Morgan Stanley: VC Activity Remains High

The number of venture deals in the crypto industry remains high, despite the deep market correction. This is reported in the Morgan Stanley report, which was at the disposal of CoinDesk.

The number of transactions peaked in December last year. However, analysts do not exclude that activity in the segment will decrease by 50% by the end of the year, given the trends in other categories of the venture capital market.

“Investing in tokens and stocks becomes more problematic during a bear market. A similar pattern was observed in 2018 and 2019,” the experts noted.

According to them, the main driver of the growth of venture capital activity last year was “abundant dollar liquidity” and high prices of crypto assets. The result was more than 1,800 transactions – a figure 160% higher than the average for previous periods.

According to the observations of researchers, at the beginning of 2020, most of the funds went to infrastructure projects and financial services. At the end of the same year and until the middle of the previous year, DeFi platforms were in demand. Since the end of 2021, investors have given preference to NFTs and gaming projects.

Earlier, JPMorgan analysts expressed the opinion that the crypto winter will be short-lived due to the influx of venture capital into the industry.

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