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You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/venture-capital-investments-show-recovery-in-crypto-market/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Venture Capital Investments Show Recovery in Crypto Market</a> 
Despite the summer lull in the <a href="https://en.coin-turk.com/anticipation-peaks-as-sec-decision-on-bitcoin-etf-nears/" data-wpel-link="internal" rel="noopener noreferrer nofollow">cryptocurrency market</a>, venture capital (VC) investments have shown signs of recovery. According to DeFiLlama data, crypto VC funding rose to $633 million in August, marking a 15% increase from the $550 million recorded in July. This indicates that investor confidence is beginning to rise again despite recent market challenges.
<h2 style="text-align: justify" id="vcs-shift-focus-to-blockchain-infrastructure">VCs Shift Focus to Blockchain Infrastructure</h2>
Luca Prosperi, CEO and co-founder of M^0 Labs, observes a significant shift in VCs’ interest towards blockchain infrastructure development firms. Prosperi predicts that this trend will continue and that investments will spread across different layers of the blockchain ecosystem.
<blockquote style="text-align: justify">
 Prosperi explains: “Due to being in the early stages of development, we expect continued investment at the infrastructure level, middle layer, and application layer. It’s a period where everything can be redesigned, similar to the late 1990s and early 2000s.”
</blockquote>
The growing interest in blockchain infrastructure highlights its vital role in technological advancement. The increase in investments in August suggests a possible shift in VC interest. Cryptocurrencies are regaining attention after a period where the <a href="https://futurearticles.co/openai-gpt-4o-vs-anthropic-claude-3-5-who-will-win-the-duel/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">artificial intelligence</a> (AI) sector drew significant focus.
<h2 style="text-align: justify" id="crypto-regains-attention-from-ai">Crypto Regains Attention from AI</h2>
VC activities in the crypto space began to decline in June as interest in AI-related ventures increased. During this period, Sentient, an open-source AI platform developer, launched an $85 million funding round led by prominent venture capitalists like Peter Thiel’s Founders Fund, Pantera Capital, and Framework Ventures.
However, the trend seems to be changing. Prosperi observes that some deep-tech <a href="https://finance.coin-turk.com/" data-wpel-link="exclude" rel="noopener noreferrer nofollow">investors</a> are returning to crypto as the AI sector approaches saturation, partly supported by the perception of a more favorable regulatory environment. However, he notes that there is no concrete evidence to support this narrative.
While blockchain infrastructure attracts significant VC interest, the technology still lacks a widespread real-world use case that could trigger mass adoption. Ganesh Swami, CEO and co-founder of Covalent, emphasizes the need for more practical applications to draw VC interest to the application layer.
<blockquote style="text-align: justify">
 Swami suggests that the approval of Bitcoin and Ether-based exchange-traded funds (ETFs) could be a significant catalyst for VC interest returning from AI to the blockchain space.
</blockquote>
Despite the summer lull in the cryptocurrency market, VC investments showed signs of recovery in August. VCs’ interest in blockchain infrastructure has significantly increased, and there is a shift back from AI to crypto. However, the lack of practical applications hinders the technology’s widespread adoption.
The post <a href="https://en.coin-turk.com/venture-capital-investments-show-recovery-in-crypto-market/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Venture Capital Investments Show Recovery in Crypto Market</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal" rel="noopener noreferrer nofollow">COINTURK NEWS</a>.

Venture Capital Investments Show Recovery in Crypto Market

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