In Q2 2024, blockchain venture capital (VC) spending rose to $2.7 billion, with the main focus on Layer-2 projects and infrastructure solutions.
Key Areas of Interest
Decentralized social media, physical infrastructure networks, and decentralized science are gaining significant traction. Meanwhile, interest in artificial intelligence has cooled due to a lack of demand and revenue.
Expert Opinions
Olaf Hannemann, co-founder and chief investment officer at CV VC, highlighted the importance of infrastructure solutions: "Infrastructure topics such as decentralized social, physical infrastructure networks, and decentralized science and health are exciting for us. Decentralized business models still offer a lot of potential." CV VC's investments in Q2 included projects like Provably and Lawyerd. Anirudh Pai, partner at Dragonfly, added: "One of our portfolio companies, Caldera, has done a great job addressing the liquidity fragmentation issue on Ethereum."
US Role and General Outlook
George McDonaugh, co-founder and co-managing director at KR1, believes US events will be highly influential: "In the short term, we’re at a critical juncture. Potential US Federal Reserve rate cuts and the upcoming elections could significantly influence the market." He also noted that following the Bitcoin halving in Spring 2024, the market may enter a phase of stable changes.
Despite the cooled interest in artificial intelligence, blockchain investments continue to grow. Investors see significant opportunities in Layer-2 projects and infrastructure solutions, especially considering the market outlook in the United States.
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