Crypto project financing trends: healthier valuations despite decreasing capital inflows

Cryptocurrency project financing has increased slightly in recent months, but is still well below its peak in 2021-2022. The current cycle focuses more on the construction of capital companies on existing projects than on the launch of new chains. Most funds flow into liquidity markets, reducing large-scale financing in new chains and resulting in reduced frequency of financing activities. Despite the decline in financing, analysts pointed out that market dynamics are healthier, token prices are more stable after they go online, and volatility between prosperity and busts has weakened. Monthly financing peaked at more than $7 billion in early 2022, but has declined since then, but analysts believe that the slowdown is conducive to the sustainability of the project and the risk-return balance of investors.