In August, the crypto world saw a significant increase in investments, despite the usual summer lull in the markets. According to DefiLlama data, venture capital (VC) in the crypto sector grew by more than 15%, rising from $550 million in July to $633 million in August. This highlights renewed investor interest, particularly in blockchain infrastructure development.

Luca Prosperi, CEO and co-founder of M^0 Labs, notes that blockchain infrastructure is attracting the most attention. He expects this trend to continue:

“We’re still in the early stages of development. Therefore, interest in investments across infrastructure, middleware, and applications will only grow, much like the reinvention we saw in the 1990s.”

Venture capital plays a crucial role in the continued growth of blockchain technology. The increase in investments in August shows that investors are returning to crypto after a period of focus on artificial intelligence (AI).

Lemniscap, a venture capital firm, secured $70 million for a new fund aimed at early-stage Web3 startups in late August. This is just one example of how the crypto sector is once again catching the eye of investors.

From AI Back to Crypto

In June, AI attracted a lot of attention, with significant investments such as Sentient, which raised $85 million for an open-source AI platform. However, the focus is now gradually shifting back to blockchain, Prosperi explained:

“The AI sector is currently overcrowded, so many deep-tech investors are now turning their attention back to crypto. They see opportunities, partly due to a sense that the regulatory environment has become more favorable.”

There is hope that the upcoming U.S. elections in November will bring more clarity to global crypto regulations.

With increasing venture capital, confidence is returning to the blockchain sector. Blockchain infrastructure, in particular, seems to be benefiting from this and will likely play a key role in future innovations.