A report released by Andreessen Horowitz on the state of crypto says that the bad times for the digital assets industry may continue. However, along with this, the report has also expressed hope of recovery in this segment. The firm says that crypto-related developers should continue working on their projects despite the downturn in the market. According to the report, “Markets are seasons and crypto is no exception. Progress made on bad days pays off later.” According to CoinMarketCap, the market capitalization of the crypto segment is around $1.28 trillion.
The report states that the Decentralized Finance (DeFi) market has grown to over $100 billion in less than two years. Token exchange and lending protocols are being used the most. Andreessen Horowitz announced an investment of about $500 million in startups in India, despite the weak crypto industry in recent months.
Yuga Labs, which created the popular non-fungible token (NFT) series Bored Ape Yacht Club (BAYC), reported in March that it had received an investment of about $450 million in a funding round led by Andreessen Horowitz. Apart from this, many investment firms have increased their focus on startups belonging to the crypto segment. Those in the crypto industry believe that investments may pick up once the regulation situation for this segment is clarified. The central government had announced a tax-related policy for the crypto industry in this year’s budget. Under this, 30 percent capital gains tax on digital assets and 1 percent TDS on their transfer is levied.
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