After less than a month since the launch of a new $515 million crypto fund, the US venture capitalists from Andreessen Horowitz (a16z) are forecasting a new crypto bull cycle. The analysts are predicting that “high quality projects” may drive a new growth cycle in the entire industry.
The famous venture capital fund, which has a great reputation and a substantial crypto portfolio, recently wrote a blog post where it anticipated some of the better projects created in the wake of the 2017 initial coin offering (ICO) boom to contribute to a new industry boom period.
The US venture capitalists are in the cryptonews for pulling data from “anectodal” evidence going back 10 years, saying that “price innovation cycles” – including the ones which peaked in 2011, 2013 and 2017 – all start with price increases that attract new people with bright ideas who end up creating promising companies and projects which benefit the space overall.
“A key feature of crypto cycles is that each one plants seeds which later grow and drive the next cycle,” reads the blog post.
The VC fund ultimately helps with new projects to “inspire more people which could culminate profits in the next cycle.
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” According to the US venture capitalists at Andreessen Horowitz, ETH was created in the 2013 cycle – and that became the foundation for the ICOs which drove the next cycle in 2017.
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The VC fund forecasts the following:
“The 2017 cycle spawned dozens of exciting projects in a wide range of areas including payments, finance, games, infrastructure, and web apps. Many of these projects are launching in the near future, possibly driving a fourth crypto cycle.”
Additionally, we can see that this blog post comes in the Bitcoin news only three weeks after the US venture capitalists said that their new Crypto Fund II exceeded the initial $450 million fundraising and totalled $515 million, launching soon and investing in the space.
Generally speaking, Andreessen Horowitz (a16z) does not predict when this fourth cycle might hit crypto. However, many of the projects that it suggests could play a pivotal role in the next iteration of the industry – including the derivatives exchange dYdX, cloud computing platform Dfinity, stablecoin provider Maker, and “privacy-first” cloud platform Oasis Labs – all four which are in the a16z portfolio.
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