Encryption venture capitulation cools by 98%, high-quality projects still receive large financing

2025-07-04 02:17:08

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The encryption venture capital market is cooling down, but there are still standout projects receiving funding.

The cryptocurrency venture capital market continued to be sluggish in the second quarter of 2023, but some notable projects still secured funding. Despite the significant decline in overall financing, some innovative projects still attracted the attention of investors.

Overall, in 2023, the total amount of encryption venture capital financing decreased significantly by 98% year-on-year. A total of 382 transactions were completed in the second quarter, with a total financing amount of $2.34 billion, marking the fifth consecutive quarter of decline since the first quarter of 2022. This indicates that investment in encryption startups may not have hit the bottom yet.

Regulatory pressure is an important factor leading to the cooling of financing. The regulatory actions taken by the U.S. Securities and Exchange Commission on some encryption assets have increased investors' concerns. This may impact the economics of future token warrants, making venture capital more cautious.

However, some high-quality projects can still secure ample funding. Here are several financing projects worth noting in June:

Mythical Games: Secured $37 million in funding to develop a Web3 gaming platform. Its game "NFL Rivals," developed in collaboration with the NFL, has performed well, demonstrating the potential for breakthrough games.
Taiko: Raised $22 million in funding, dedicated to developing a Layer 2 scaling solution highly compatible with Ethereum. Its fully peer-to-peer design concept is worth noting.
Maverick Protocol: Secured $9 million in funding to develop an innovative AMM protocol. Its unique liquidity strategy design is expected to enhance capital efficiency and attract institutional investors.

Despite the overall market downturn, these projects indicate that innovative and breakthrough potential encryption projects can still attract investors' favor. With the future development of the industry, more high-quality projects are expected to emerge, promoting further growth in the encryption industry.

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