The number of venture capital deals in the crypto industry remains high, despite the deep correction of the market. This is reported in a Morgan Stanley report.
The number of deals peaked in December last year. However, analysts do not rule out that activity in the segment will decrease by 50% by the end of the year, given the trends in other categories of the venture capital market.
Investments in tokens and stocks become more problematic during a bear market. A similar pattern was seen in 2018 and 2019,” experts said.
According to them, the main driver of venture capital activity last year was “abundant dollar liquidity” and high prices of cryptoassets. The result was more than 1,800 deals, a figure 160 percent higher than the average for previous periods.
The researchers observed that in early 2020, most of the money went into infrastructure projects and financial services. DeFi-platforms were in demand at the end of that year and until the middle of the previous year. Since the end of 2021, investors have favored NFT and gaming projects.