It's no secret that the cryptocurrency market is in a bit of a slump. However despite the so-called "crypto winter," venture capitalists are still betting big on blockchain technology. In fact, many VCs see the market dip as an opportunity to invest in lower valuations. Therefore, in what are the top VC’s investing in? Let's take a look.
1. Decentralized exchanges. One area that VCs are particularly bullish on is decentralized exchanges (DEXes) and their scalability . DEXes are digital asset exchanges that run on decentralized protocols, which means they're not subject to the same regulations as centralized exchanges. This makes them much more resistant to hacks and other malicious activity.
2. Blockchain core infrastructure. Another area of interest for VCs is blockchain infrastructure. This includes everything from protocol development to middleware and data analytics. The reason VCs are so interested in this space is because it's the foundation upon which all decentralized applications (dApps) & web3 itself are built. With the rise of dApps, there's a growing need for robust blockchain infrastructure.
3. Infrastructure layers of dApps and protocols. Of course, dApps and protocols are also high on the list of potential investments for VCs during this crypto winter. That's because dApps have the potential to redefine a number of industries, from finance to healthcare to supply chain management. And protocols are the underlying layer that power dApps and enable them to function properly.
4. Privacy. Another category of crypto assets that VCs are keeping an eye on is privacy preserving assets. These are digital currencies that offer enhanced privacy features, such as untraceability and fungibility. The reason privacy coins are so attractive to VCs is because they have the potential to be used in a number of different ways, from e-commerce to peer-to-peer payments.
Despite the current market conditions, venture capitalists are still bullish on blockchain technology and see immense potential in the space— especially when it comes to decentralized applications, protocols, and infrastructure development. So, if you're thinking about launching a blockchain project, now may be the perfect time to do it!
To learn more about investing into emerging technologies, get in touch with Un1ty.