Based on official statistics, over the past six months of 2021, the amount of venture capital investments in digital assets exceeded the figure for all previous years combined. Despite this unconditional fact, it cannot be denied that the crypto industry experienced a lot of volatility earlier this year. That is evidenced by the fall in market capitalization in January and February. It dropped from $ 2.5 trillion to $ 1.8 trillion.
Although there have been several ups and downs in the market this year, venture capital investment continues to flow into the cryptocurrency industry continuously. So, for example, since the beginning of this year, various funds have invested about $ 17 billion in companies, projects, and startups, one way or another related to digital assets.
“Many investors have made substantial profits at the very beginning of the development of the cryptocurrency sector. Now they understand more or less the direction in which the market situation will develop. For this reason, despite everything, investors continue to invest in digital assets, ”said Johnny Liu, CEO of KuCoin.