Crypto investors increasingly turn away from VC-backed projects

Crypto investors are losing interest in venture capital-backed projects, according to Delphi Digital head of research Ceteris Paribus. In a post on X, Ceteris Paribus said most of the necessary infrastructure and blockchains have already been built, and capital is now concentrating on applications that can grow with relatively modest funding. As a result, the need for large crypto VCs is also declining, Ceteris Paribus said. Tokens promoted with high fully diluted valuations, or FDVs, are being shunned by the market, while investor skepticism is growing toward protocols that fail to generate profits. By contrast, protocols that consistently produce revenue are beginning to draw attention.