There’s no doubt that the crypto market as a whole has experienced a lot of volatility in recent months. It was clear from the fact that the global crypto market’s market value plummeted from $2.5 trillion to about $1.8 trillion in just 45 days during the first half of the year. The market, on the other hand, is once again on the mend.
Even though the market has seen significant volatility, one thing has remained constant throughout these turbulent times. As the entire blockchain ecosystem undergoes its own evolution, the global crypto market has been witness to steady and startling sums of capital on a regular basis. According to statistics, venture capital (VC) funds alone put $17 billion into various startups and enterprises that are all tied to crypto or working around it during the first half of the year.
To put things in perspective, the $17 billion listed above is more than any one year in the history of blockchain investing. Not only that, but when compared to the entire amount of money that has been made throughout the industry’s history, this is the greatest documented amount of funding.
Johnny LYU, the CEO of KuCoin, a cryptocurrency exchange platform, stated that early investors have already gathered an idea about the development fundamentals of the crypto market through experience, and that after achieving significant profitability, they now have a deep understanding of the market and are more than willing to make investments despite market fluctuations.
He went on to say that for traditional investors, this market has shown to be quite profitable because it can provide them with large returns in a much shorter period of time. Using Bitcoins as an example, he believes that when the market is unpredictable, it is the best time for investors to go in and be certain that their investments will pay off.
The majority of the $17 billion described above came from a single transaction that signaled the exchange of a completely new cryptocurrency called Bullish. Around $10 billion was raised in cash and other digital assets as part of the agreement. Block.one had made an initial injection of 20 million EOS tokens, $100 million, and a staggering 164,000 BTC as a result of this deal. Peter Thiel, Galaxy Digital, Alan Howard, and other notable investors, along with Block.one’s investments, helped raise the bar.
This single transaction was more than enough to make 2021 the greatest year for crypto investment yet, but if it wasn’t enough, the remaining $7.2 billion can easily compete with the $7.4 million raised in total in 2018. This is a remarkable achievement in and of itself, given that there are still five months left in the year.
When it comes to taking chances, Igneous Terranus, the head of communications at Bybit, another cryptocurrency firm, noted that venture capitalists are quite interested. According to him, venture investors see a lot of potential for the industry to grow in the next years, and they are willing to work with innovators and partners on long-term enterprises.
Andreessen Horowitz, a Silicon Valley-based venture capital firm, launched a $2.2 billion crypto fund just over a month ago, and one of the company’s spokespersons stated that the firm is maintaining a radically optimistic outlook regarding the entire crypto space, despite the current market fluctuations. Chris Dixon and Katie Haun, partners at the firm, stated that they are staunch believers that the next generation of computing advancements will occur in the realm of cryptography, and they do not want to lose out.
It’s also worth noting that the firm’s first crypto-related fundings occurred roughly three years ago, when the entire market was not even close to where it is now. As a result, Andreessen Horowitz has done a fantastic job of articulating their firm belief in the industry’s future.