Following Donald Trump's election victory, the cryptocurrency sector secured over $1 billion in venture capital funding, reflecting growing investor trust.
Growth of Venture Capital in Cryptocurrency
Since the November 6 election, crypto startups have raised about $1.3 billion. November saw $796 million, while December added $511 million.
Major Projects and Investments
The Avalanche Foundation raised $250 million from a private token sale for its Avalanche9000 upgrade, focusing on enhancing blockchain scalability and reducing transaction costs. Infrastructure projects attracted over $500 million, with Zero Gravity Labs and Bitcoin mining company Canaan Creative as major recipients. The DeFi sector is recovering, attracting over $150 million in funding, with major investments in USDX Money and World Liberty Financial.
Crypto-Friendly Policies and Regulations
The surge in funding is linked to positive expectations of Trump's support for the crypto sector, including commitments to clarify rules and create a Strategic Bitcoin Reserve. His choice of pro-crypto people like Paul Atkins as SEC chair and David Sachs as the White House crypto czar hints at a shift towards friendlier regulations. Experts believe these changes could lead to greater institutional involvement and investment in the cryptocurrency market, suggesting a significant future for growth and innovation in the industry.
Overall, Trump's victory and appointment of crypto-friendly figures are setting the stage for the market's future growth and innovation in the cryptocurrency industry.
