Coinbase Ventures have announced their 2022 Q2 reports which have revealed a decline in deal activity on the platform largely due to the ongoing crypto winter. The current bearish market conditions however have not changed the firm’s stance on investing in projects that demonstrate true utility as well as the fast-growing Web3 sector.

According to Coinbase’s Q2 investment memo released on Thursday, Coinbase’s platform deal activity fell by 34% QoQ from 71 to 47 but remained up 68% YoY. The investment company noted that the decline had started since the beginning of the year as it witnessed It’s first decline in funding since 2019.

Coinbase’s investment branch attributed the sharp decline to the market’s current high volatility which has caused prospective and current investors to rethink and only invest in corporations that could show enough growth to justify another seed round. However, Coinbase has reiterated that they are not deterred by the market conditions and will continue to invest in projects with real utility.

Centralized lenders have been notorious for risky practices which has crippled the market in the past few months. This is the reason why Coinbase also announced that it will be focusing on investing in DeFi protocols instead. While many centralized companies are facing insolvency due to improper management, DeFi protocols like Compound, MarkerDAO and Dave have performed nicely amid the current violent volatility that shook up the crypto market.

Compared to the last bear market, Coinbase now has more profound innovations in DeFis, NFTs and more that have real applications beyond their Crypto Kitties. For this reason, many analysts and speculators believe the company will comfortably survive this crypto winter. This is a far cry from their projections in the last bear market when Coinbase was pronounced as “crypto dead”.

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