NEW: Galaxy Digital Reports Crypto VC Investment Hits $3.2B Despite Slow Market

Galaxy Digital reports a resilient venture capital scene in crypto with Q2 investments reaching $3.19 billion, up from $3.16 billion in the previous quarter. The number of deals rose by 8% to 739, indicating sustained investor interest despite broader market uncertainties. Notable growth areas included Web3 and Layer 1 projects, which collectively drew significant funding.

Amid fluctuating cryptocurrency prices, the disconnection between Bitcoin’s market performance and venture capital investments suggests a more nuanced, mature approach to funding innovation. Significant investments in Bitcoin Layer 2 projects, which saw a 174% increase in funds, exemplify the sector’s dynamism and investor confidence in infrastructure development.

The increase in venture activities, especially in early-stage deals, predicts a potentially vibrant latter half of 2024 for the crypto sector. With venture capitalists competing more fiercely, the current trajectory positions 2024 to rival the peak investment years of 2021 and 2022, hinting at a robust future for crypto ventures.

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