According to a report by Galaxy Research, venture capital firms are becoming increasingly disinterested in the crypto industry, despite the recent rise of Bitcoin and Ethereum. During Q2 of this year, crypto and blockchain firms received $2.3 billion in investments from venture capital firms, a significant decrease from the $8 billion invested during the same period last year.

The report suggests that a challenging business environment and higher interest rates have reduced the flow of deals, causing the sum of venture capital invested in crypto firms to decline for the fifth quarter in a row. Despite this, the number of deals increased to 456 from 439 in Q1, with startups focused on trading, exchanges, investing, and lending receiving the most capital.