Venture capital firms are becoming more discerning about their cryptocurrency investments, focusing on projects with stable, predictable revenue models instead of speculative early-stage technology. This trend signifies a shift tied to the crypto market’s maturity. 📈
Eva Oberholzer, Chief Investment Officer at Ajna Capital, believes this maturity marks a new phase similar to previous technological cycles. She cites pre-seed investments becoming less common as firms seek ventures with proven business models.
Oberholzer highlights that successful crypto investments today prioritize predictable revenue streams, institutional backing, and long-term industry adoption over hype-driven trends like memecoins. 🚫
This transition signals a larger shift within the cryptocurrency sector towards institutional investment and emphasizes companies delivering sustainable value rather than just speculative price gains seen in past cycles.
Furthermore, private fundraising activity for blockchain startups is still ongoing but with increasing scrutiny on revenue generation. Projects focused on stablecoins and payment infrastructure that generate fees have garnered significant VC interest.
Real-world asset (RWA) tokenization platforms are also gaining prominence as prime investment targets due to their potential for revenue generation from managing tokenized assets on-chain. 💎
Matt Hougan, CIO at Bitwise, commented on the rising preference for yield-generating assets like staked Ether. Companies generating earnings are more attractive to traditional financial investors used to established revenue models. 💰
Ethereum’s layer-1 blockchain continues to dominate with stablecoin activity, RWA tokenization, and DeFi platforms offering stable revenue streams through fees and financial services.
For deeper insights into how traditional finance demands revenue-generating crypto projects, explore Coinstelegram analyses and reports.