2024: A turning point for the crypto industry after a tough year

2023 has been a difficult year for stakeholders in the crypto industry in general, especially when it comes to funding. Regardless, with cryptocurrency resurgence and prospects on the horizon, many industry players believe things will improve in 2024. However, not everyone shares this optimism.

Flagship crypto coins including Bitcoin, Ether and XRP

Optimists about the funding of the crypto market in 2024

In 2023, the field of cryptocurrency financing faced enormous challenges. It suffered a staggering 68% drop to $10.6 billion from $33.2 billion the previous year.

Several elements contributed to this situation. Contributing factors include high interest rates, the distracting expansion of AI, regulatory issues, and instances of crypto collapses involving FTX, Celsius, and BlockFi.

However, despite this bleak state of affairs, several investors in the crypto industry believe that the situation should improve in 2024. This is the case with Coinbase Ventures, Polygon Ventures, NGC Ventures, Multicoin Capital, HashKey Capital and Animoca Brands.

All its players in the field of crypto-financing say something similar. Specifically, that 2024 would be a great year for the industry. This is thanks, among other things, to the comprehensibility of regulation, the participation of institutions and innovations in user involvement.

Crypto Industry Funding Prospects in 2024 by Venture Capital Firms

The position of the pessimists

This showed an optimism some cryptocurrency investors do not share. Among them, Mike Novogratz’s Galaxy Ventures. He foresees a difficult and undemanding crypto-financing environment in 2024.

According to him, successful companies could face stagnation or decline in fundraising. This is because the partner community would be limited as it is re-indexed to illiquid investments.

Shima Capital, while not necessarily taking this view, takes an optimistic but cautious view. This investor has confidence in the long-term potential of the crypto market. However, he is aware of the risks inherent in this industry.

Finally, despite the challenges of 2023, major venture capital players predict a positive trajectory for cryptocurrency funding in 2024. An outlook that echoes the projections of several crypto-related companies such as VanEck, Bitwise, Bitget and Messari. Everyone sees the industry breaking records in 2024.

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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.


The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.

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