I was pretty shocked to see that October 2024 turned out to be a massive month for crypto VC funding, with over $2 billion raised. I mean, the market looked pretty bleak back then. But apparently, key players like Animoca Brands were behind this surge. In this post, I'll break down what I found and share my thoughts on whether this is just a temporary blip or something more significant.
It turns out that Animoca Brands was involved in 102 of the 107 deals made in October. That's some serious dominance! What caught my attention was their shift in focus. They used to pour money into NFT games and P2E projects, but now they're all about utility and infrastructure. This pivot seems strategic, especially considering how many core challenges there are still in the crypto space.
Their investments in companies like Rocket Pool and Chainlink make sense when you consider that those projects are addressing issues like scalability and interoperability—things we definitely need for mainstream adoption.
One of the most interesting takeaways from my research was the noticeable shift towards utility and infrastructure projects. Apparently, over 26% of all deals made in October were focused on developer tools! It makes sense; as the market matures, we need better tools and frameworks to build on top of it.
Projects like Lido DAO are also fascinating because they focus on governance and liquid staking—essentially creating a safer ecosystem for users while ensuring their participation is incentivized. And let's not forget about IBM's involvement; it seems like traditional companies are starting to embrace crypto infrastructure.
Now here's where things get a bit dicey: apparently a lot of these VC funds are relying on ETH-denominated treasuries. On one hand, Ethereum's transition to Proof of Stake means less supply overall; could that make ETH more valuable? But then again, crypto assets are notoriously volatile...
The article pointed out that including crypto assets can diversify your portfolio but also increase risk significantly. Seems like a balancing act is necessary if you're going down that route.
Finally, I couldn't help but notice how cyclical funding patterns seem to be in crypto. During bull markets everyone’s throwing money at projects left right and center; during bear markets it's crickets. Makes you wonder if we're heading into another Bitcoin halving cycle...
According to some reports cited in the article (like Hashdex), there's both secular (long-term) and cyclical (short-term) trends affecting crypto right now. Those Bitcoin halvings have historically led to price increases about 12-18 months post-event—definitely something worth keeping an eye on!
So here’s my takeaway after diving deep into this topic:
1) The surge might just be an indication of market maturity rather than a temporary phenomenon.
2) Animoca's strategic shift could serve as a roadmap for other investors
3) Understanding cycles is crucial if you want navigate successfully through these turbulent waters
Is it just me or does it feel like we're entering into another phase? Would love to hear your thoughts!
