Bitcoin-native startups are outperforming the overall crypto sector in terms of venture capital deals, as reported by Trammell Venture Partners. While the number of crypto venture fundraising deals rose 1% in 2022 from the previous year, deals involving companies focused primarily on Bitcoin skyrocketed 52.9%. Total capital raised by firms founded "with the first principle that bitcoin is the global monetary asset of the future" also increased, rising 13.9% in 2022 to $343 million. Despite the growth, TVP believes there's still a "severe misallocation" of capital, with companies focused on Bitcoin accounting for just 2% of total crypto deals last year and only 1.3% of venture dollars invested. TVP sees potential for growth in areas such as stablecoins and the Lightning Network, and believes that Bitcoin is often overlooked in favor of projects and protocols that move faster.

(By Nathan Crooks)