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Cryptocurrency investment transactions in February have dropped 60% since October last year, as investors become more cautious and selective

Cryptocurrency investment transactions in February have dropped 60% since October last year, as investors become more cautious and selective

Bitget2025/03/20 00:27

PANews reported on March 20th, according to The Block, the number of monthly risk transactions in the crypto field has significantly shrunk. In February, only 116 private transactions were tracked, marking one of the lowest points in recent years. This is a significant decrease compared to over 300 transactions recorded in October 2024 - a drop of 60% within five months. This slowdown is consistent with broader market conditions as overall risk appetite in financial markets has weakened. Despite the decrease in transaction volume, total investment value remained relatively stable at about $1 billion in February, consistent with monthly totals since October 2022.

However, an exception occurred in March when investment exceeded $2.3 billion. Binance reached an agreement with Abu Dhabi's MGX which invested $2 billion into this cryptocurrency exchange platform. Although traditional risk trading seems to be cooling down, new investment models are emerging. An exchange launched an investment group on Echo platform that focuses specifically on projects based on Base construction. Echo represents an interesting evolution in crypto financing allowing individual traders to pool resources and jointly invest web3 projects.

The contraction of venture capital appears to have had a relatively even impact across all categories of cryptocurrencies; infrastructure, DeFi (Decentralized Finance), crypto financial services and NFT/game sectors have seen their transaction volumes decline from their peak levels back in 2024.This cooling off period for venture capital could signal that the cryptocurrency industry is entering a mature phase where investors become more selective and focus more on sustainable business models rather than speculative concepts.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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