After Donald Trump‘s election victory, the cryptocurrency sector saw over $1 billion in venture capital funding. This increase shows growing trust in the industry, driven by hopes for a supportive government and clearer rules.
Since the election on November 6, crypto startups have raised about $1.3 billion. November brought in $796 million, and December added $511 million. The Avalanche Foundation raised $250 million from a private token sale for its big upgrade, Avalanche9000, which focuses on improving blockchain scalability and lowering transaction costs.
Infrastructure projects have drawn significant investments, exceeding $500 million, with Zero Gravity Labs and Bitcoin mining company Canaan Creative being major recipients. The DeFi sector is bouncing back, attracting over $150 million in funding, with major investments in USDX Money and World Liberty Financial.
This funding surge is linked to positive feelings about Trump’s possible backing for the crypto sector, which includes commitments to clarify rules and create a Strategic Bitcoin Reserve.
His choice of pro-crypto people, like Paul Atkins for SEC chair and David Sachs as the White House crypto czar, hints at a move towards friendlier regulations.
Experts think these changes could lead to more institutions getting involved and investing in the cryptocurrency market, suggesting a significant time ahead that might boost both adoption and innovation in the industry.
