Morgan Stanley Says That Venture Capital Activity Remains High
According to the latest report released by Morgan Stanley, the number of venture deals in the crypto industry remains high, despite the deep market correction.
Despite the number of transactions hit a record high in December 2021, analysts do not exclude that activity in the segment will decrease by 50% by the end of the year, given the trends in other categories of the venture capital market.
The experts have said:
“Investing in tokens and stocks becomes more problematic during a bear market. A similar pattern was observed in 2018 and 2019.”
According to them, the main driver of the growth of venture capital activity last year was “abundant dollar liquidity” and high prices of crypto assets. The result was more than 1,800 transactions, 160% more than the average for previous periods.