Is The Bull Market Coming Back?

May 18, 2023

Half the VCs said yes!

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Is the bullish crypto market coming back?

Half the VCs said yes, and the others disagreed.

Over half of VCs said the crypto winter would end sometime between Q4 2023 and Q1 2024.

@InnMindcom asked 147 crypto VC investors from Europe, Asia, the Middle East, and the US.

Read the rest of the report, here.

Some of the key points - polls and evidence below:

1. Market would recover fast.

28.6% of VCs predicted a market recovery by Q4 2023, while 14.3% were even more optimistic, expecting an end to crypto winter as early as Q2-3 2023.

2. VCs are waiting for mass-adoption boosters.

VCs foresee a shift towards more mature projects and products.

They will focus on mass adoption and user-friendly experiences in the crypto space.

What products on which chain are they looking for?

a. Ethereum, Polygon (MATIC), and Polkadot are the most favored blockchain protocols.

42.9%, 14.3%, and 7.1% of investors are interested in them, respectively.

b. Startups that will have the highest potentials are:

Web3 Infrastructure (42.9%): Layer 1 and 2 solutions, decentralized oracles, cloud solutions, and related technologies.

Crypto Finance and DeFi (25.0%): decentralized lending, borrowing, and trading platforms.

3. Money on the way to MORE startups

📈42.9% of VCs: plan to either invest in more startups this year

35.7% of VCs: maintain their current investment pace

4. MORE money, too.

When asked about VCs’ ticket size of investments,

39.3% VCs: $100K-250K

21.4% VCs: $50K-$100K

5. B2B adoption started to take off.

More brands and traditional corporations are entering the market.

@Adobe releases new analytics services for metaverses.

@Shopify partnered with @novel_commerce to enable brands to create, mint, and sell NFTs on their platform.

6. Some bullish-market signs here:

Open interest increased. (number of futures contracts that have not closed.)

Higher levels of open interest —> risk-on market sentiment and high liquidity

= many buyers and sellers on the market

7. More active users

Active daily addresses across major blockchains have held steady at 2 million,

a 77% increase since last August.

Smoothie’s key takeaways:

People are optimistic for market recovery, evolving trends, and promising verticals.

Stay tuned for exciting developments! 🌟


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