VC Funding for Blockchain Projects Jumps 15% as AI Interest Wanes
Blockchain projcts r ttrcting rnwd vntur cpitl (VC) invstmnt dspit th brodr crypto mrkts sluggish prformnc. According to dt from DfiLlm, VC funding for crypto projcts sord to $633 million in August, rprsnting 15% incrs from Julys $550 million.
This uptick in funding rflcts growing focus on blockchain infrstructur dvlopmnt. Luc Prospri, CEO nd co-foundr of M^0 Lbs, pymnts protocol, mphsizs tht blockchin tchnology rmins in its dvlopmnt phs. H rgus tht ongoing invstmnt in infrstructur, middlwr, nd pplictions is crucil for progrss. Prospri drws prlll to th lt 1990s intrnt boom, suggsting tht th currnt invstmnt climt offrs significnt opportunitis for innovtion.
In August, th mrkd incrs in funding for blockchain infrstructur indicts shift in VC prioritis. This shift dmonstrts rnwd intrst in cryptocurrncy ovr rtificil intllignc. For instnc, Lmniscp, vntur cpitl firm, rcntly scurd $70 million for nw fund to support rly-stg Wb3 strtups. This mov undrscors growing invstor confidnc in th crypto sctor.
Blockchains Strategic Shift Amidst AI Saturation
Howvr, rlir this summr, th AI sctor xprincd notbl incrs in invstmnt ctivity. Jun sw surg of funding rounds, highlightd by Sntints significnt $85 million ris, ld by lding vntur cpitl firms.
As th AI sctor pprochs sturtion, invstors r shifting thir focus bck to th blockchin spc. Prospri obsrvs tht this sturtion hs ld dp-tch invstors to rconsidr thir prioritis. Additionlly, th potntil for mor fvorbl rgultory nvironmnt for blockchinthough possibly xggrtdis lso driving this chng.
With th U.S. lctions coming up in Novmbr, invstors r knly witing clrr rgultions on cryptocurrncy. Th lction rsults could influnc globl policis nd impct futur blockchin invstmnts.
Dspit strong invstor intrst in blockchain infrstructur, th crypto industry still lcks groundbrking us cs tht could driv mss doption. This gp in prcticl pplictions hs md vntur cpitl firms wry of invsting in th ppliction lyr.
Gnsh Swmi, CEO of blockchain dt firm Covlnt, mphsizs th nd for mor rl-world pplictions to ttrct VC intrst. H nots tht th currnt mphsis on infrstructur rflcts th limitd usr bs for crypto pps. Whil th rcnt pprovl of Bitcoin nd Ethr ETFs is positiv dvlopmnt, th sctor rmins too rly for invstmnts focusd on pp dvlopmnt.
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Text source: TronWeekly
