Consistent venture capital interest in cryptocurrencies
Venture capital activity is often seen as a good indicator of how much confidence major investors have in venture capital. Cryptocurrency Market. The consistent number of projects from July to August 2024 suggests a steady level of interest. Both months were the third highest in terms of funding rounds this year, second only to March and May, which recorded 190 and 155 rounds respectively.
Investment Trends: Focus on DeFi and AI
In August, decentralized finance (Defi) was the main focus, accounting for about 25% of total investments. Artificial intelligence (AI) followed with 15%, while tools and wallets had the smallest share at just 2.2%.
The biggest event in August is Bitcoin-related. Mining company. Major mining company Bitfarms announced it was acquiring Stronghold Digital for $175 million. The deal included stock and debt, and was part of a larger merger and acquisition (M&A) trend in the cryptocurrency mining sector.
Bitfarms agreed to exchange 2.52 shares of its own stock for each share of Stronghold, representing a 71% premium over Stronghold’s 90-day volume-weighted average price on Nasdaq as of mid-August.
Major Funding Rounds: A Closer Look
August also saw several other significant funding rounds, highlighting the continued development and innovation in the cryptocurrency sector.
1. Story Protocol
- Amount raised: 80 million dollars
- Major Investors: Andreessen Horowitz, Polychain
- purpose: Story Protocol is a blockchain platform focused on intellectual property (IP). It allows IP owners to store their property on the network and embed usage terms such as licensing fees into smart contracts. This allows IP owners to receive compensation whenever their property is used.
2. Bridge
- Amount raised: 58 million dollars
- Founder: Former Coinbase and Square executives
- purpose: Bridge is a stablecoin network that aims to disrupt traditional financial systems such as Swift and credit card infrastructure. The company offers a more efficient alternative.
3. Chaos Labs
- Amount raised: 55 million dollars
- purpose: Chaos Labs focuses on risk management in the DeFi space.
4. Morpho
- Amount raised: 50 million dollars
- purpose: Morpho is working to integrate DeFi into the broader internet infrastructure.
5. Sahara AI
- Amount raised: 43 million dollars
- purpose: Sahara AI aims to strengthen AI sovereignty.
6. Fabric Encryption
- Amount raised: 33 million dollars
- purpose: Fabric Cryptography is developing advanced cryptographic hardware.
A notable little round
One of the smaller but notable funding rounds involved Parlay Labs, which raised $2 million and attracted a lot of attention due to the hype surrounding it. Meme Coin Launchpad.
Parlay Labs is the first multi-chain, codeless platform to launch a meme coin. The funding round was led by DNA.fund, with participation from prominent individual investors such as Market Rebellion’s Jon Najarian and EOS New York co-founder Rick Schlesinger.
Summary of Major Cryptocurrency Investments for August 2024
|
company |
Fundraising amount |
sector |
Main focus |
|
Story Protocol |
80 million dollars |
Intellectual Property Rights |
Blockchain Platform for IP Management |
|
leg |
58 million dollars |
Stablecoin Network |
Destroy the existing financial system |
|
Chaos Labs |
55 million dollars |
DeFi Risk Management |
Risk Management in DeFi |
|
Morpho |
50 million dollars |
DeFi Infrastructure |
Integrating DeFi into Internet Infrastructure |
|
Sahara AI |
43 million dollars |
AI Sovereignty |
Strengthening AI Sovereignty |
|
Fabric Encryption |
33 million dollars |
Encryption hardware |
Development of advanced cryptographic hardware |
|
Parley Labs |
2 million dollars |
Meme Coin Launchpad |
Multichain, codeless platform for meme coins |
August 2024 was a month of steady venture capital investment in the crypto space, despite a slight decrease in total funding compared to July. The focus on DeFi and AI shows where investors see the greatest potential, while smaller rounds like Parlay Labs are a sign of a new trend. The continued interest from investors shows a positive outlook for the crypto industry even in an uncertain economic environment.