Galaxy Digital: Cryptocurrency venture capital activity will remain sluggish in 2024

Odaily News Galaxy Digital said in a research report that despite the recent rise in digital asset prices, cryptocurrency venture capital (VC) activity is still below the previous bull market level. There are many reasons for the stagnation of the venture capital market, including a "barbell market" in which Bitcoin and its new spot ETFs take center stage, while meme coins have limited "marginal net new activity." These meme coins have difficulty obtaining funding support and their "lifespan is questionable." The report said that new projects at the intersection of artificial intelligence (AI) and cryptocurrencies are gaining attention, and upcoming regulatory changes may bring more opportunities for stablecoins, decentralized finance (DeFi) and tokenization. (CoinDesk)