In anticipation of another rally in the value of digital assets, investors have noticeably perked up. Traditionally, a strong pullback followed by a prolonged lull paves the way for new record highs in the crypto market. According to some analysts, it is the best time to invest in virtual currencies.
The wave theory of the crypto market is confirmed by reports that the world's largest cryptocurrency funds raised $3.6 billion during the first six months of this year. Data provided by Binance Research indicates rising interest in the industry from conservative investors, including those who finance various crypto projects and add digital currencies to their portfolios.
“The first half of 2023 extended a decline in overall crypto deal activities with a fall in venture capital funding. However, crypto enthusiasts and renowned VC firms expressed an optimistic outlook. They cited the ongoing research and development in the space, believing that this ‘price-innovation’ cycle will continue, creating opportunities for Web3 technologies. <…> The top 10 funds raised a total of US$3.61B for the first half of 2023,” the report revealed.
Funds focused on cryptocurrencies were not the only ones that attracted investor interest. Projects seeking to scale and expand their activities also raised significant capital, experts at Binance Research noted.
“It appears that VCs are shifting toward an infrastructure focus such as mining facilities, cross-chain bridges, lending, and hardware-related projects. However, compared to 2022, we note that the average deal size has considerably fallen due to market conditions,” the company added.