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08/18/2024

HTX Ventures' Strategic Blockchain Investments: A Mid-Year Analysis

HTX Ventures' 2024 mid-year investment report reveals targeted bets on BTCFi, multi-chain infrastructure, and user experience — aimed at unlocking Bitcoin's potential in DeFi and improving blockchain interoperability. HTX Ventures has published its 2024 Mid-Year Investment Report, detailing strategic investments and key focus areas for the first half of the year. As a major player in blockchain venture capital (VC), HTX Ventures has concentrated on six core sectors and inve

HTX Ventures' Strategic Blockchain Investments: A Mid-Year Analysis

HTX Ventures' 2024 mid-year investment report reveals targeted bets on BTCFi, multi-chain infrastructure, and user experience — aimed at unlocking Bitcoin's potential in DeFi and improving blockchain interoperability.

HTX Ventures has published its 2024 Mid-Year Investment Report, detailing strategic investments and key focus areas for the first half of the year. As a major player in blockchain venture capital (VC), HTX Ventures has concentrated on six core sectors and invested in 23 projects to drive innovation and address fundamental Web3 challenges, as illustrated in the figure below.

HTX's Investments

BTCFi: Expanding Bitcoin's Role in DeFi
One of HTX Ventures' primary focus areas is Bitcoin decentralized finance, or BTCFi. While Bitcoin remains the most secure and widely recognized network, its use in DeFi has been limited by the absence of native smart contract functionality. As of mid-2024, total value locked (TVL) in BTCFi stood at approximately $1.2 billion — just 0.09% of Bitcoin's market cap.

By comparison, Ethereum's TVL-to-market-cap ratio sits at around 14%, signaling significant room for growth within the Bitcoin ecosystem. Even a modest increase to a 1% ratio could result in tenfold growth for BTCFi, unlocking billions of dollars in value.

HTX Ventures has invested in projects like Babylon and BounceBit to tap into this potential. Babylon enables Bitcoin to be used as a staking asset for proof-of-stake blockchains. BounceBit — a centralized restaking platform — provides foundational infrastructure for DeFi products and aims to extend Bitcoin's utility beyond its role as a store of value.

Multi-Chain Infrastructure: Improving Blockchain Connectivity
HTX Ventures has also placed a strong emphasis on multi-chain infrastructure development. The current blockchain landscape is highly fragmented, with numerous layer-1 and layer-2 networks operating in silos — leading to inefficiencies across the board. To address these challenges, HTX Ventures has invested in projects like Monad and Avail.

Monad is a layer-1 blockchain that improves the performance and scalability of the Ethereum Virtual Machine through parallel execution. Avail builds a unified layer to tackle rollup fragmentation at scale, offering a cost-efficient and secure solution for improving cross-chain interoperability. These investments are aimed at building the infrastructure needed for a more connected and efficient blockchain ecosystem.

User Experience: A Critical Factor for Web3 Adoption
Advanced blockchain solutions must be accessible and user-friendly to achieve mainstream adoption. This conviction has led HTX Ventures to invest in projects like Tomo, a Web3 social app designed to improve user engagement. Tomo transforms users' online presence into a global social wallet and embeds financial incentives directly into social interactions.

Download the full report for free here

Strategic Impact of the Investments
HTX Ventures' investment strategy supports projects that contribute to the long-term growth of the blockchain ecosystem. The firm currently backs more than 300 projects across various blockchain sectors, with many already listed and trading on the HTX exchange. In the first half of 2024, HTX Ventures continued allocating capital to high-potential projects, reinforcing its position as one of the leading investors in the blockchain space.