Venture capital funding in the crypto space fell to $1.7 billion in Q3, down 31.3% from the previous quarter

Bloomberg reported that venture capital in the cryptocurrency field fell sharply in the third quarter before the election frenzy of US President-elect Trump revived industry sentiment. PitchBook data shows that in the three months ending September 30th, cryptocurrency startups attracted $1.7 billion in investment, a 31.3% decrease from the previous quarter. The number of transactions reached 392, a decrease of 25.3%. PitchBook senior analyst Robert Le wrote in the report, "We believe that this adjustment is a natural and necessary component of a healthy cryptocurrency market." Le attributed the decline in cryptocurrency venture capital transactions to macroeconomic factors, including increased market volatility and concerns about a US economic recession. Like the previous quarter, new infrastructure projects such as blockchain continued to be favored by venture capitalists in the third quarter. Le said he expects further integration between cryptocurrency exchanges, custodians, and infrastructure companies in the future.