The second quarter of 2021 witnessed an unprecedented cryptocurrency crash. However, that crash didn’t stop venture capitalists from investing in the cryptocurrency market, which raked in investments worth a whopping $4.4 billion. This figure is significantly higher than what the market managed to accumulate in the first quarter of 2021 ($2.89 billion). It also completely dwarfs the total investments in the crypto market from 2020 ($2.3 billion).
The two companies that saw the maximum investments were Circle and Ledger. Circle, a peer-to-peer system of payments based in the USA, raised $440 million in a funding round in May. Ledger, a French manufacturer of hardware wallets, secured investments worth $380 million from a June Series C funding round.
According to experts, the stance of venture capitalist firms on the crypto market is bullish, even though the crypto industry was shaken up by the crash during the second quarter’s middle. It all started with Bitcoin’s April skyrocketing, when it soared to almost $65,000. However, the strong start to the second quarter wasn’t to last, as Bitcoin crashed more than 53% within a month.
As the trends suggest, venture capitalist firms aren’t shy to invest in cryptocurrencies even when the market is down, as they typically invest by acquiring startup entities. In 2018 and early 2019, when cryptocurrency prices crashed and tumbled, venture capitalists still pumped in $1.6 billion into the crypto industry. Even during the third quarter of 2021, during which crypto prices are likely to remain low, market experts are expecting even more success for the crypto industry.