Highly valued blockchain startups see market caps plunge amid liquidity crunch

The market capitalizations of several blockchain startups, once valued at over $1 billion by venture capital firms, have fallen sharply amid a recent liquidity crunch, Cointelegraph reported, citing data from CryptoRank. For example, Humanity Protocol (H), which received a $1 billion valuation from VCs, now has a market cap of just $285 million. Similarly, Fuel Network (FUEL), valued at nearly $1 billion, currently has a market cap of only around $11 million. Even projects with a smaller initial gap between valuation and market cap have been affected, such as Plasma (XPL), which saw its VC valuation of $500 million drop to a current market cap of $220 million. The report added that VC investment in the cryptocurrency sector has been sluggish in the second half of the year. While a few large investment deals have supported the total amount of capital raised, overall investment activity has remained low.