Cryptocurrency Galaxy Research, which prepared a new report on the industry, shared critical data. The research also included the forecast for the price movement of the market in 2023. Here are the details of the research.
Galaxy Research stated that the current market conditions will continue to support the declining support in the second and third quarters of 2022.
Institutional Investment Avoids Cryptocurrencies
As we reported as Koinfinans.com, although the crypto money market had a bad start to 2022, it attracted the attention of venture capital. As a matter of fact, with the coming of the second and third quarters, investments decreased sharply. The decrease in venture capital continued at the beginning of 2023.
Venture capital funds will remain low in 2023, according to Alex Thorn, Head of Firmwide Research.
more than $30bn was invested in crypto startups by venture investors in 2022 across 2900 deals, an absolutely monster year that was only beaten by 2021. but that isn’t remotely the whole story… pic.twitter.com/khduDKDZhd
— Alex Thorn (@intangiblecoins) January 5, 2023
NEWS CONTINUES BELOW
in 2022 Web3 More than 30 billion dollars were invested in many different sectors.
Firms Have Invested Billions of Dollars in This Crypto Industry!
web3 game sector managed to attract the attention of investors in 2022. Equity-backed investments raised $4.49 billion as a result of this interest.
While 2900 venture deals were signed in 2022, capital flow in these deals bottomed out in the fourth quarter.
Crypto and Web3 companies may have difficulty raising funds in 2023 if this trend continues.
How Will Regulatory Moves Affect the Industry?
Declining company valuations and stricter investor demands are likely to make fundraising more difficult for entrepreneurs.
The regulatory environment in the United States will also have an impact as the country continues to dominate the crypto startup ecosystem. Last year, a US-based startup received over 40% of all crypto venture capital deals. The continued importance and dominant position of the United States in the crypto industry provides ample reason for American policymakers to clarify and codify the rules and regulations for the emerging field.
Crunchbase’s January 5 report also predicted a slower 2023 for venture finance across all industries. Global venture capital funding has dropped 35% since 2021 to $445 billion.
