In 2024, Bitcoin showed significant growth, but this did not result in an increase in venture capital funding in the crypto sector, according to Insights For VC.
Bitcoin and Venture Capital Correlation
According to Insights For VC, Bitcoin's price increased by more than 100% over the past year, but this did not translate into a significant rise in blockchain investment. In total, 2153 funding rounds were recorded in 2024 worth $11.5 billion, which is notably lower than the levels of 2021 and 2022.
DeFi and Infrastructure Development
Despite the overall decline in funding, decentralized finance (DeFi) and blockchain infrastructure showed growth. The report notes that investment in DeFi grew by 85%, and infrastructure by 57%.
Anticipated Growth in 2025
Analysts expect the volume of venture capital funding in the crypto sphere to increase in 2025. According to forecasts, interest in blockchain will rise amidst increasing cryptocurrency prices and new initiatives.
Despite the decline in venture funding volumes compared to previous years, the cryptocurrency sector remains promising, particularly in decentralized finance and infrastructure.
