Paradigm, a prominent crypto investment company, is gearing up to raise up to $850 million for a new fund, as venture capitalists show renewed interest in the digital asset industry. This move comes on the heels of Bitcoin surpassing its all-time high and the overall cryptocurrency market approaching its 2021 peak.

Investments into various crypto protocols and innovative ideas saw a significant surge of over 50% last month, with capitalists injecting approximately $1.1 billion into the digital asset sector. Decentralized finance (DeFi) solutions built on platforms like Ethereum, Polygon, and other DeFi-centric blockchains attracted the most funding.

Paradigm is aiming to secure a minimum of $750 million for this fund, which could potentially be its largest fundraising effort since 2021. In the past, the company raised a record-breaking $2.5 billion for a crypto fund, until Andreessen Horowitz (a16z) surpassed that with a $4.5 billion crypto-investment vehicle in May 2022.

Other venture capital firms, such as a16z, Hack VC, and Hivemind, are also actively participating in fundraisers ranging from $50 million to $150 million, as the crypto industry gains momentum once again.

Paradigm, led by Coinbase Co-Founder Fred Ehrsam and former Sequoia Capital executive Matt Huang, was notably involved in an investment in the now-bankrupt crypto exchange FTX. Despite facing challenges with FTX, Paradigm remains a key player in the crypto investment space.

As the industry continues to evolve, Paradigm’s commitment to innovation and strategic investments underscores its position as a leading player in the crypto investment landscape.

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