Crypto VCs Aren’t Celebrating This Rally Just Yet

Here are some staggering numbers for you. Year to date, bitcoin is up 43%, ether is up 39%, and Coinbase shares are up more than 92%. In fact, Coinbase is now trading around 5  times its projected next 12 month sales, up from 2.1 times when 2023 began, according to Koyfin. Where’s all this coming from?

It turns out, startups and venture capitalists are scratching their heads a bit, too, around what’s driving this rally (other than the same factors driving the broader surge in tech stocks, that is.) For that reason they’re not rewriting their crypto winter playbooks just yet. “It took a lot of people by surprise, to be honest. I don’t think a lot of people were positioned….to take advantage of the rally,” said Paul Almasi, who leads blockchain infrastructure company Alchemy’s venture capital arm.