The cryptocurrency industry experienced a surge in investment after the election victory of Donald Trump, raising over $1 billion from venture capital (VC) funds.
This capital influx reflects an optimistic outlook on a more favorable regulatory environment under the new administration.
Crypto Startups Raise Over $1 Billion in Investments
Following Trump's election victory on November 6th, cryptocurrency startups have raised around $1.3 billion in funding. According to DeFiLlama data, VCs contributed $796 million in November and an additional $511 million in December.
The Avalanche Foundation emerged as the largest fundraiser during this period, securing $250 million through a private token sale. This funding coincides with the scheduled Avalanche9000 upgrade on December 16th, which promises to improve blockchain scalability and reduce costs.
Venture capitalists have significantly increased their interest in Bit cryptocurrency infrastructure projects, investing over $500 million in infrastructure developers. Zero Gravity Labs secured $40 million, and Canaan Creative, a Bit miner, raised $30 million.
The DeFi sector also experienced a resurgence, receiving over $150 million in funding. Key investments include $45 million for USDX Money and $30 million for World Liberty Financial. This resurgence reflects the recovery of the DeFi market, attracting the attention of both retail and institutional investors.
The surge in funding is linked to expectations of a pro-Bit stance from the incoming administration. Trump has expressed strong support for the Bit industry, promising to provide long-awaited regulatory clarity and establish a Strategic Bit Reserve (SBR) in the United States.
Since his election victory, Trump has announced several pro-Bit appointments, including Paul Atkins as the proposed chair of the Securities and Exchange Commission (SEC) and David Sacks as the White House's first Bit czar.
Experts believe these appointments could facilitate regulatory clarity, remove barriers to institutional adoption, and drive further investment in this sector.
