Note that the cryptocurrency market started the new week relatively strong. Specifically, Bitcoin surpassed the $22,000 level today, while Etherium surpassed the $1,500 mark.

Overall, on a weekly basis, the top cryptocurrencies’ price movements in terms of market capitalisation look like this.

Changes in the rates of the top cryptocurrencies over the past week

Who invests in cryptocurrencies?

The Crunchbase report states that crypto startup funding reached $4.2 billion in the second quarter of 2022, almost the same as the second quarter of 2021. However, compared to the first quarter of 2022, inflows into crypto startups were almost a billion less.

One of the reasons for the increase in industry funding in the first quarter of this year was that more large fundraising rounds were conducted by startups. We are talking about six rounds of $400 million or more, compared to only one such round in the second quarter of 2022.

Data on venture capital inflows into the crypto market

Yash Patel, general partner at Telstra Ventures, commented on the report data. Here is his rejoinder, in which the expert shares the details of what is happening.

Yes, we are seeing a decline in crypto and blockchain investments, which reflects larger trends in technology markets.

In other words, the expert first of all points to the general downturn in markets - and both traditional finance and digital assets - as the reason for the decline in activity. Such conditions are difficult enough to speculate in, so most novice investors prefer to exit the niche. Experienced investors, on the other hand, are mostly adding to their own token holdings from promising blockchain projects with an eye on the long term.

Patel added that the liquidity problems of centralised cryptocurrency lenders like Celsius have caused a sense of uncertainty among venture capitalists and ordinary users alike. According to CryptoSlate sources, Celsius declared bankruptcy last week. However, despite the drop in overall funding from venture capitalists, there are still those in the niche who believe in the long-term potential of the crypto market. Recall that in May, Andreessen Horowitz raised $4.5 billion in its fourth crypto fund, the largest of its kind.

Read also: Analyst considers the collapse of the crypto market not a cause for panic, but a period of opportunity. And here's why

Note that some in the blockchain industry continue to raise money despite the niche bearish trend that has set in. In mid-June, for example, a Solana-based NFT platform called Magic Eden raised an additional $130 million in funding. This puts it at a valuation of $1.6 billion. Most importantly, it was able to achieve this figure in just nine months.

A month later, the company announced the launch of a venture capital unit called Magic Ventures. It will focus on funding gaming startups in the Web3 world.

The home page of the NFT platform Magic Eden

For now, crypto is of less interest not only to venture capital firms, but also to banks, which are now seeking a refuge from rapidly rising inflation in the US and around the world in general. Federal Reserve (Fed) officials the day before shared the results of a survey conducted among executives at the country’s largest banks to find out their interests and expectations for financial products and services related to cryptocurrencies.

According to the survey, more than 66 per cent of the 80 finance directors who participated in the survey agreed that the adoption of distributed ledger technology (DLT) and cryptocurrencies or decentralised financial products was not a priority to achieve greater economic growth and development. At least in the short term, reports CryptoPotato.

Here’s the relevant quote.

When asked about the expected impact of DLT or cryptocurrencies on their bank’s liquidity management practices over the next 2-5 years and 5-10 years, respondents generally said that their bank does not view these technologies as having much impact on liquidity management.

Fed survey data

However, for a quarter of respondents, blockchain and other decentralised technologies are a medium or high priority for improving financial infrastructure. Accordingly, most banks are not ignoring crypto entirely, but are simply being cautious. This is especially true at a time of uncertainty due to the general decline of the crypto market and the lack of regulatory schemes for it in most regions.


We believe that such changes in the funding industry by major players are predictable. There is still uncertainty in the coin market today, one way or another, which is worsened by macroeconomic and geopolitical issues. And in such an environment, investment should be much more cautious than as the bull run develops. Obviously, when the market returns to flight mode, the volume of investments by professional investors will once again break records.