Bitcoin, Venture Capital and Security Tokens Flashing Green: Report

Bitcoin, Venture Capital and Security Tokens Flashing Green: Report

The blockchain industry does not exist in a bubble. The impact of the rest of the world’s economic turmoil seems to be trampled throughout the progress of the “blockchain revolution”. Traditional markets like the S&P 500 collapsed more than 11.5% in September, while the high-tech Nasdaq 100 fell 12.5%. However, Bitcoin (BTC) may have seen a decoupling, dropping just 3% over the same period.

For some, these are signs of a Bitcoin bottom, but this does not necessarily mean an immediate reversal in the market. Are there other positive blinking signals that we can see in the charts?

Each month, Cointelegraph Research releases an Investor Insights report that analyzes key indicators from various sectors of the blockchain industry. Metrics from 10 sectors in the blockchain space — including regulation, crypto mining, security tokens, Bitcoin and Ether (ETH) derivatives, and venture capital (VC) activities — are analyzed by those who work closely with the topic.

Download and purchase this report at Cointelegraph Research Terminal.

Bitcoin and beyond

Venture capital is often a lagging indicator of market sentiment in traditional markets. In 2021, the blockchain space saw continuous increases in capital inflows every quarter. In 2022, the first quarter continued this trend, while the second quarter began to show a slowdown in venture capital coming into the space. However, September saw a 20.6% rise in venture capital investment with over 93 trades over the course of the month.

Web3 had the most single deals at 31 and brought in $378.8 million, while Infrastructure had 29 deals and saw the bulk of the investment at $913.6 million. This could be another indication that the bottom of this cycle of a bear market is in.

The size of the security token is growing

In September, the market capitalization of security tokens grew by 6.27% – $18.7 billion, compared to $17.6 billion in August. Volume also increased by 19.76% compared to the previous month. The action within the security token markets is not the only positive thing, like the news that the Hong Kong government is too to encourage Proposals for security tokens to be submitted to the Securities and Futures Commission (SFC) bode well for the industry.

While this may be an often neglected area of ​​interest by the average blockchain investor, security tokens help demonstrate mainstream adoption in various applications of the blockchain industry and can be a good indicator of how all crypto markets will perform in the near future.

Cointelegraph Research Team

Cointelegraph’s research department includes some of the best talent in the blockchain industry. By combining academic rigor and filtering through hands-on and hard-earned experience, the team researchers are committed to bringing the most accurate and insightful content available on the market.

Demelza Hayes, Ph.D., is director of research at Cointelegraph. Hays has assembled a team of experts from the fields of finance, economics and technology to bring to market the premier source of industry reports and insightful analysis. The team uses APIs from a variety of sources in order to provide accurate and useful information and analytics.