The Cryptocurrency industry has seen an investment boom, with startups raising more than $1 billion from venture capital (VC) funds since Donald Trump’s election victory.
This increase in capital reflects growing optimism about a more favorable regulatory environment under the new administration.
Cryptocurrency Startups Attract More Than 1 Billion USD In Investment
Since Trump’s election victory on November 6, Crypto startups have attracted approximately $1.3 billion in funding. Data from DefiLlama shows that venture capital funds contributed $796 million in November and another $511 million in December.
The Avalanche Foundation emerged as the largest fundraiser during this period, securing $250 million through a private token sale. The funding is in line with the network’s upcoming Avalanche9000 upgrade, scheduled for December 16, which promises enhanced Blockchain scalability and reduced costs.
Venture capitalists have significantly increased their interest in Cryptocurrency infrastructure projects. They have invested more than $500 million in infrastructure developers, with Zero Gravity Labs raising $40 million and Bitcoin miner Canaan Creative receiving significant funding of $30 million.
Meanwhile, the DeFi sector also saw a rise, receiving more than $150 million in funding. Key investments include $45 million to USDX Money and $30 million to World Liberty Financial. This resurgence follows a recovery in the DeFi market, with the sector now attracting interest from both retail and institutional investors.
This increase in funding is linked to expectations of a pro-Cryptocurrency stance by the incoming administration. Trump has shown strong support for the Cryptocurrency industry, pledging to bring long-standing regulatory clarity and establish a Strategic Bitcoin Reserve (SBR) in the United States.
Since his election victory, Trump has announced a number of Crypto-friendly appointments. Includes Paul Atkins as candidate for chairman of the Securities and Exchange Commission (SEC) and David Sachs as the White House’s first “Crypto czar.”
Experts believe these appointments could promote regulatory clarity, remove barriers to institutional adoption and spur greater investment in the sector.