Crypto VC Activity Shows Signs of Life with $4.6B Quarter, But Still Lags Bull Market Peak

Crypto venture capital activity showed significant improvement in Q3, with investment rising to $4.65 billion—a 290% increase that marks the second-best quarter since the FTX implosion.

However, analysts note the sector has not yet returned to its 2021-2022 bull market heights.

“Despite remaining below 2021-2022 bull market levels, venture activity remains active and healthy overall,” commented Alex Thorn, Head of Research at Galaxy Digital.

The report highlights sustained interest in areas like AI and trading, but also reveals a market reliant on a few large deals. Seven rounds, including those for Revolut and Kraken, made up 50% of the total capital, suggesting a cautious and selective approach from investors despite the overall positive trend.