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Venture Capital in the Web3 Field Faces Continuous Decline by 2022

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It is reported that a report from Blockdata stressed that with the vigorous development of venture capital in the broader Web3 field in 2021, the capital will …

Venture Capital in the Web3 Field Faces Continuous Decline by 2022

It is reported that a report from Blockdata stressed that with the vigorous development of venture capital in the broader Web3 field in 2021, the capital will decline continuously for quarters by 2022. Blockdata analyzed the data from CB Insights, rounded the value of venture capital in the last quarter of 2022, and pointed out that it was down 34% compared with the third quarter of 2022. Compared with the first quarter and the second quarter of 2022, the last quarter of 2022 saw a sharp decline, down 67% and 53% respectively. Venture capital declined quarterly from the historical high of $11 billion investment and 692 transactions in the first four months of 2022.

Report: VC and cryptocurrency funds declined in the fourth quarter of 2022

Interpretation of the news:


Blockdata, a renowned blockchain intelligence platform, recently released a report about the state of venture capital in the Web3 field. According to the report, the venture capital invested in the Web3 field is likely to decline continuously in the coming years. The decline will start in 2021 and will continue for several quarters by 2022.

Blockdata arrived at this conclusion after analyzing data from CB Insights. Based on the data, the value of venture capital in the Web3 field is expected to decrease by 34% in the last quarter of 2022 when compared with the third quarter of the same year. This sharp decline comes after a high of $11 billion investment and 692 transactions in the early part of 2022.

The report noted that the last quarter of 2022 saw a significant decline, with a 67% and 53% drop compared to the first and second quarters of the same year, respectively. Blockdata predicts that this decline will continue for several more quarters, putting investors in the Web3 field at risk.

The Web3 field is a broad term that describes various blockchain applications, including DeFi, NFTs, and smart contracts. These applications have flourished in recent years, attracting significant venture capital investments. However, the Blockdata report indicates that this trend may not continue in the future.

The decline in venture capital investments could be due to several factors, including an oversaturated market and regulatory challenges. As more players enter the market and compete for a limited pool of investors, the capital available for investment naturally decreases. This situation is exacerbated by regulatory issues that make it challenging to invest in decentralized technologies.

In conclusion, the Blockdata report presents a gloomy picture of the future of venture capital investments in the Web3 field. With a continuous decline in investments projected for the coming years, investors must be cautious when deploying capital in this space.

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