Crypto valuations fell in 2023, but VCs expect them to rebound in 2024.

The crypto market has been turbulent in recent years, with many big institutions failing or going under. However, a recent spike in interest in crypto, driven by rising bitcoin and ethereum prices, is rebuilding momentum. Fundraising was difficult for both startups and venture capitalists in 2023, with valuations correcting and fewer token offerings. The aftermath of 2021’s hype is still being reflected in the crypto venture landscape, with many tourist VCs in retreat and their weaker portfolio investments bleeding out. The drier funding climate of 2023 only served to weed out the weaker businesses that had managed to secure capital in 2021. Valuations “came back down to earth,” and many funds, even those focused on web3 “slammed the brakes on new deals.” “In 2023, most people seemed to finally get the message that we’re in a new market and that the investor class is thinking and behaving more rationally than before,” Anderson said.

Link to the original story: https://techcrunch.com/2023/12/20/crypto-valuations-2023/