The Bear Market and Crypto VCs: Where Are They Investing?
The bear market is still in full swing, which means that venture capitalists (VCs) in the crypto industry are being cautious with their investments. Unlike whales who may throw money at anything, VCs are carefully considering their next moves. In a bear market like the one we’re experiencing now, VCs are looking for investments with long-term potential to maximize profits once the bull market returns.
Pendle Finance (PENDLE)
One altcoin that VCs are currently investing in is Pendle Finance. This protocol, which operates in the LSDfi space, has been gaining attention recently. Last year, the value of the PENDLE token increased by an impressive 719%. While its current price of $0.55 is far from its all-time high of $2.45 two years ago, Pendle Finance continues to build and offer new features to its users. It started with passive yields and has now expanded to include Real-World Assets (RWAs), attracting investment from Binance Labs.
Maple Finance (MPL)
Another altcoin that VCs have their eyes on is Maple Finance. Maple Finance focuses on institutional adoption and operates in the RWA field. Although it faced setbacks when Alameda went under, causing borrowers to default and lenders to retreat, Maple Finance aims to bring traditional finance (TradFi) into decentralized finance (DeFi). With tokenized treasury bills as part of its on-chain loan business backed by RWAs, Maple Finance closed a $5 million strategic funding round led by BlockTower and Tiago Capital.
Drip Haus
Drip Haus is an NFT marketplace on Solana that offers free NFTs from various creators. To join, you need an invitation code from an existing user. Users have the opportunity to receive a common, rare, or legendary NFT daily. Additionally, Drip Haus has a lock-in page on its website that provides extra chances to receive rare or legendary NFTs once per week. Drip Haus recently raised $3 million in a seed round.
Ellipsis Labs
Ellipsis Labs is the team behind Phoenix Trade, a decentralized exchange (DEX) on Solana that offers instant settlement. It is the first DEX on Solana to provide this feature and has a decentralized limit order book. With Solana’s high throughput, Ellipsis Labs aims to attract more professional market makers. The company raised $3.3 million in a seed round led by Electric Capital.
Stroom Network
Stroom Network brings liquid staking for BTC to the table by operating in the Lightning Network and EVM-compatible networks like Ethereum. The Lightning Network enables fast transactions on the Bitcoin chain and acts as a layer 2 solution. Stroom serves as a bridge between the Lightning Network and EVM-compatible chains, allowing users to deposit and stake BTC in the Lightning Network and receive the InBTC token in return. Greenfield Capital led a $3.5 million seed round for Stroom.
Hot Take: Crypto VCs Seek Long-Term Potential in Altcoins
Despite the ongoing bear market, crypto venture capitalists are still actively investing in altcoins. They are focused on identifying projects with long-term potential that can generate significant profits once the bull market returns. Pendle Finance, Maple Finance, Drip Haus, Ellipsis Labs, and Stroom Network are among the altcoins that have caught the attention of VCs. These projects offer unique features and solutions within the crypto ecosystem, attracting investments from prominent VCs and signaling their potential for future growth. As the crypto market continues to evolve, VCs will play a crucial role in supporting innovative projects and shaping the industry’s landscape.
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