Data analysis indicates that funding for cryptocurrency projects declined by 30% in August, reaching $1.9 billion. However, DeFi programs are showing a rise in investor interest.
Funding for cryptocurrency projects in August
According to DeFiLlama, funding for crypto protocols dropped to $1.9 billion in August, down from $2.67 billion in July. Nevertheless, the volume of venture investments largely remained consistent with July levels, driven by the successful $600 million token sale from PUMP.
Trends and expert comments
There is a noticeable shift in investor interest from new blockchain launches to the development of existing projects. Expert Daan Crypto stated that lower valuations on new launches have led to more stable price action, adding, "this is a good change for the market and the projects themselves," allowing room for potential upside for all participants.
Regulatory changes in South Korea
On September 16, the Ministry of SMEs and Startups in South Korea officially lifted the ban on venture funding for crypto firms, allowing cryptocurrency companies access to venture investments, which is expected to create equal opportunities for technology startups.
The decrease in funding amid increasing interest in DeFi and regulatory changes in South Korea highlights the dynamics and evolution of the crypto market.
