VC-Backed Web3 and Altcoin Projects Dey Face High Failure Rate; Small-Cap Altcoins Dey Struggle Amid Weak Market and Tight Funding
Di recent tins wey Chainplay, Strorible plus beta big report dem show, nearly half of all Web3 plus altcoin projects wey get venture capital launch between 2023 and 2024 don shutdown, failure rate na like 45-50%. Of the projects wey still dey survive, 77% dey make less than $1,000 every month, dis one show say market no really accept dem well plus business models no strong. Companies wey get over $50 million funding get better chance to survive, but those wey get less than $5 million dey fail pass 33%. Big investors and VC funds like Polychain Capital, Circle, Andreessen Horowitz, Binance Labs, plus big angels like Arthur Hayes don lose plenty money as many of their projects don turn inactive or collapse. Dis failure tin don make investors no too trust small altcoins and Web3 startups again, so dem dey play safe with their money now. Capital don start to move go market leaders like Bitcoin, plus bad sentiment dey dominate altcoin sector. So, strong altcoin season no deep likely now, market go still consolidate and people go test sustainable business models more than pure institutional backing.
Bearish
Di news dey show say di altcoin and Web3 market don shrink well well, as almost half of di projects wey venture capital support fail for one year, and di plenty wey remain dey show poor revenue performance. Investor mind don turn negative, especially for small-cap altcoins, as even big VC companies dey face tori losses. As money don dey move go big cryptocurrencies like Bitcoin, traders fit expect continue dey avoid risk and no much speculation for di wide altcoin sector. Historically, dis kain pattern dey lead to market consolidation and e make altcoins market dey dull, e no too likely to get ’altcoin season’ soon and e mean say bearish conditions for the altcoin market go still remain for short and medium term.