In the past few months, the cryptocurrency market has changed, which caused one of the crypto world’s longest “crypto winters.” This led to a period where investors sold their assets for cheaper prices (a bear market), and overall there was less interest in cryptocurrencies. You may think that this would scare off crypto investors, but you would be wrong–the market is actually more robust than it was before. In fact, there are many indications that the crypto ecosystem is in a Bull Market.
Bull market makes a comeback to the crypto ecosystem
Although the market is currently volatile, crypto analysts have spotted indicators that expansion is on the horizon. In a bear market, investors are typically hesitant to invest in an already struggling market. However, a bull market creates FOMO and massive crypto investments across the market.
If the crypto market is supposedly in a bearish state, why is there still a number of seed funding and injections of money being made?
A cryptocurrency bull market is a period when the prices of digital assets are rising, and investors remain hopeful about the future. The inverse of this is known as a bear market, where asset prices fall and negative sentiment pervades.
Prices have remained in a bull market since early 2020 when they bottomed out after the global crypto market went into freefall. Since then, prices have risen steadily, peaking at all-time highs in November 2021.
In early 2022, the crypto market experienced a severe downturn. This was caused by the collapse of Terra Luna, one of the most important stablecoins at that time. The aftermath of this event brought down the price of many cryptocurrencies and kept them low for some time afterward, bringing an end to the crypto bull market.
The present market trend is that of a Bull run. Seven Six Six, the VC firm co-founded by Reddit co-founder Alexis Ohanian, is planning to raise $177.6 million for a new fund that will invest in cryptocurrency tokens. Current investment and trust level trends in the crypto industry suggest that we are in a bull market.
The new fund, named Kryptós, will be the first focused exclusively on crypto. The market crash in crypto has created buying opportunities that this fund seeks to take advantage of. Some assets are beginning to show signs of recovery, indicating that a bull market is likely inbound.
Indications of a crypto bull run market
Besides the VC firm founded by the Reddit co-founder, there are other indicators of a crypto bull market. Decentralized finance oracle provider Redstone closed a $7 million seed funding round led by investment firm Lemniscap.
Redstone just got a fresh round of money less than a year after its inception. The entity was created in the midst of a difficult fundraising period for DeFi. Since the fourth quarter of 2020, venture funding for DeFi has been at its lowest point since then.
The money will go towards the quicker implementation of RedStone’s product repertoire, showing a strong belief in an upcoming bull market. Warp Contracts are smart contracts established on Arweave designed for data processing and storage in this set of products.
These are not the only signals of increased trust in the crypto market. NFT Genius, a firm creating world-class experiences and marketplace technology for the NFT market, announced today a $150M valuation following the completion of a $10.5M Series A funding round.
The ultimate objective of the crypto-focused entity is to make investing in Web3 as simple and painless as possible so that anybody with a credit card can do it. With the money it earns, NFT Genius plans to expand its services to entertainment and culture deals while also working on scaling up the Gaia marketplace so that it can support many more companies and brands.
Crypto seed funding floods the market
The crypto bull market has enticed other companies, one of them being Xterio. They are a web3 game developer and the recently published entity that raised $40 million in their funding round. The round was co-led by video game developer FunPlus, venture capital firm Makers Fund, FTX Ventures, and blockchain gaming platform XPLA.
While the current market slump necessitated Xterio to work hard to persuade prospective investors, the business was able to raise an oversubscribed round without having to reduce its valuation. Xterio’s goal is to bring everyday web2 players into web3 via onboarding.
Temasek, Singapore’s state investor, is investing in Animoca Brands and US$100 million in funding from Temasek International. Even after the US$2 trillion market collapse, one of the world’s most successful venture capital firms is betting on one of crypto’s most prolific investment houses.
Temasek has said that it would rather invest in the service providers of cryptocurrencies instead of investing in cryptocurrencies themselves.
Most investors are in shock after the crypto winter hit, which has erased digital assets totaling $2 trillion since November. In addition, fundraising for startups related to cryptocurrencies fell 26% last quarter and is expected temporal fall even more in this current period. However, as things presently stand, a bull market is on the verge of emerging, and opinions have reversed.
