{"id":456747,"date":"2022-06-02T21:30:00","date_gmt":"2022-06-02T18:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/after-record-growth-vc-crypto-investments-decline-38-in-may\/"},"modified":"2022-06-02T21:30:00","modified_gmt":"2022-06-02T18:30:00","slug":"after-record-growth-vc-crypto-investments-decline-38-in-may","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/after-record-growth-vc-crypto-investments-decline-38-in-may\/","title":{"rendered":"# After record growth, VC crypto investments decline 38% in May"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3cd1679b16a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3cd1679b16a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/after-record-growth-vc-crypto-investments-decline-38-in-may\/#%E2%80%9D_After_record_growth_VC_crypto_investments_decline_38_in_May_%E2%80%9C\" >&#8221; After record growth, VC crypto investments decline 38% in May &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_After_record_growth_VC_crypto_investments_decline_38_in_May_%E2%80%9C\"><\/span>&#8221; After record growth, VC crypto investments decline 38% in May &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>This short-term decline in investments can be correlated to the recent market correction, which made Bitcoin (BTC) and other major cryptocurrencies lose 50% or more of their value.<\/p>\n<p>According to new data released by Dove Metrics, total venture capital investment in crypto declined 38.2% over the past month, from $6.8 billion in April to $4.7 billion in May, while surging 97.8% since last year.<\/p>\n<p>Data on investment distribution <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.dovemetrics.com\/\">showed<\/a> infrastructure companies received 21% of the pie, while decentralized finance (DeFi) startups accounted for 14%. Centralized finance (CeFi) and nonfungible token (NFT) projects each accounted for 13%.\u00a0<\/p>\n<p>This goes to show that venture capital funds might be playing safe by investing in core technologies that actually bring innovation to the crypto space, instead of riskier projects.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/df3a3099-97db-4454-a325-dc08718494fe.png\"><figcaption style=\"text-align: center;\"><em>Venture funding amounts by company. Source: Dove Metrics<\/em><\/figcaption><\/figure>\n<p>Some examples of this investment trend include Xendit, a payment gateway solution that focuses on Southeast Asia, and Lithosphere, a next-generation platform for cross-chain decentralized <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications, raising $700 million combined.<\/p>\n<p>The largest allocation in May was led by Sam Bankman-Fried, founder of the popular crypto exchange FTX, who invested $650 million into the popular brokerage platform Robinhood, securing 7.6% of company shares.<\/p>\n<p>Other important investments include the renowned analytics company Chainalysis and KuCoin, one of the biggest crypto exchanges, raising more than $150 million each.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/19e8a938-36aa-4dbd-ab46-93cbdc1a2e84.png\"><figcaption style=\"text-align: center;\"><em>Largest crypto venture funds. Source: Dove Metrics<\/em><\/figcaption><\/figure>\n<p>Data shows the United States as the largest source of venture investments, followed by Singapore and Hong Kong, a statistic that <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/nvca.org\/research\/#:~:text=US%20Within%20the%20Global%20VC,IPOs%20that%20represented%20%24512%20billion.\">matches<\/a> the global trend for VC.<\/p>\n<p>Some of the biggest venture capital names include Andressen Horowitz, with $4.5 billion raised for Web3 projects, bringing its total crypto investment allocation to $7.6 Billion. The firm is known for backing several successful projects in the past, such as Coinbase or Solana (SOL).<\/p>\n<p>Another big name is NGC Ventures, a Singapore-based firm that recently raised $100 million, aiming for \u201chigh-potential projects\u201d in the Web3 space. Some of its successful previous investments include Algorand (ALGO) and Oasis (ROSE).<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Cointelegraph Research launches venture capital database<\/em><\/strong><\/p>\n<p>Despite the current crypto recession, venture capital seems to be more active than ever, with JPMorgan stating that the recent Terra ecosystem collapse didn\u2019t affect VC. This showcases an underlying trust in crypto and blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> evolution in the long term, with innovative technologies like Web3 and DeFi taking the lead.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/after-record-growth-vc-crypto-investments-decline-38-in-may\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; After record growth, VC crypto investments decline 38% in May &#8220; This short-term decline in investments can be correlated to the recent market correction, which made Bitcoin (BTC) and other major cryptocurrencies lose 50% or more of their value. According to new data released by Dove Metrics, total venture capital investment in crypto declined&#8230;<\/p>\n","protected":false},"author":1,"featured_media":456748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvNzIyNTdiZDAtOTEyZi00YmJlLTllMGQtOTU2ZTEzNDVlZWJlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75719,117,61514,71745],"class_list":["post-456747","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-funding","tag-business","tag-research","tag-venture-capital"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/456747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=456747"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/456747\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/456748"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=456747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=456747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=456747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}