How has crypto funding changed since 2021?
Crypto funding has dramatically shifted since 2021's peak. In 2021, venture capital poured billions into crypto startups, with funding reaching approximately $14 billion for the year. However, 2022-2023 saw a significant contraction due to market downturns, high-profile bankruptcies like FTX, and regulatory crackdowns. Funding dropped to around $6-8 billion annually. Recently, interest has stabilized but remains cautious, with investors focusing on profitability over hype. Institutional funding has become more selective, favoring established protocols and infrastructure projects over speculative ventures. The market now demands stronger fundamentals and compliance frameworks, reflecting a maturation in how the industry attracts capital.
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