The venture capital in the encryption field fell to 1.7 billion US dollars in Q3, a decrease of 31.3% from the previous quarter

On November 13, before the election fervor of U.S. President-elect Trump revived industry sentiment, venture capital in the cryptocurrency sector fell sharply in the third quarter. PitchBook data shows that in the three months ending September 30, cryptocurrency startups attracted $1.7 billion in investment, a decrease of 31.3% from the previous quarter. The number of deals completed decreased by 25.3%, to 392 transactions. "We believe this adjustment is a natural and necessary part of a healthy cryptocurrency market," wrote Robert Le, senior analyst at PitchBook, in his report. Le attributed the decline in cryptocurrency venture capital transactions to macroeconomic factors including increased market volatility and concerns about a US economic recession. As with last quarter, new blockchain infrastructure projects continued to be favored by venture capitalists during Q3 . Le said he expects further integration among future crypto exchanges, custodians and infrastructure companies.(Bloomberg)