More Than 1,000 Crypto Deals Sealed for Venture Capital Firms, Worth $17bn in 2022


Venture Capital (VC) firms continue penetrating the crypto sector, given that they have pumped in $17 billion so far this year.

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Glassnode co-founders under the pseudonym Negentropic explained:

“$17bn VC crypto investments and +1k deals in 2022. This year has seen the highest median deal size at $4.5mn. Capital is flowing into BTC and altcoins, setting up for a strong recovery.”

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Source: Swissblock Technologies

VC firms have been keeping a keen eye on the crypto sector based on the massive capital inflows witnessed. For instance, they invested a whopping $30 billion in 2021.

Market analyst Holger Zshaepitz pointed out:

“Crypto attracted $30bn of venture-capital funding in 2021, more than in all other years combined. VC money almost quadrupled previous high of $8bn in 2018, the year following Bitcoin’s 1,300% breakthrough gain.”

Bitcoin Whale Accumulation Soars

Despite Bitcoin whales’ holdings dropping significantly since October 2021, their accumulation has gained momentum based on the addition of 18,104 BTC.

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Market insight provider Santiment stated:

“Bitcoin whale addresses holding 100 to 10k BTC have collectively accumulated 18,104 more BTC since the April 10th price drop below $40k. However, their holdings are still down substantially since October.”

Holding is a favoured strategy in the Bitcoin market, given that accumulation is not only being undertaken by whales but also by smaller addresses. 

Crypto analytic firm IntoTheBlock noted:

“The BTC accumulation is not only a whale’s game. Addresses holding <10 BTC have increased their holdings in 2022 dramatically.”

Meanwhile, the weekly trade volume on centralized exchanges hit lows, last seen in June 2021.

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Source: Kaiko

The tendency also shows a holding culture because once coins exit exchanges, they are transferred to cold storage and digital wallets for future purposes other than speculation. 

Image source: Shutterstock




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