Highlights
GCR is a research and investment community. As a collective, we source investments, conduct research and diligence, and make investments together.
This piece lays out some highlights from the 3rd quarter of 2024:
The GCR Community saw over 32 investment opportunities in Q2, of which ~30% came directly from community members and contributors.
The top category we invested in was DeFi.
During Q2 2024, GCR invested in a total of 1 deal.
GCR Core Team presents a Q3 macro review and shares our outlook for Q4 2024.
Market Resurgence and Growth Opportunities in Q3
Q3 2024 Summary Stats
The GCR Community continues to make significant strides, demonstrating unwavering discipline in curating top-notch deal flow and forging partnerships with high-conviction companies.During Q3 2024, GCR assessed 32 deals, a commendable number and slightly below Q2 2024. Notably, approximately 30% of these opportunities were directly contributed by the community and external contributors. This figure is down from last quarter, where we saw around 80% of opportunities brought by the community. We continue to strive to encourage more contribution from the community. In Q3 2024, deal opportunities continued to rise steadily, with a consistent increase in member and deal activities in the overall crypto industry.When categorizing the opportunities explored by the community, DeFi leads at 50%, followed by Infrastructure at approximately 40%. Web3, Social Networks, DEXes, L1, L2 and GameFi collectively represent another 10%, with the remaining categories covering various other areas.Furthermore, the community solely focused on investments in the Infrastructure category during this quarter, similar to past quarters .In alignment with the prevailing market sentiment and the selective approach of the GCR Community, GCR executed 1 deal in Q3 2024 - signing a steady activity flow for 2024. Every quarter, we proudly share our progress to showcase the capabilities of GCR's community-led investment platform. The GCR Community continues to grow stronger as members educate each other about their specific areas of expertise. If you would like to learn more about how you can be involved with the GCR Community, join our Discord.
Q3 Cryptocurrency Market Analysis
Q3 2024 was marked by a continuation of a 7-month long consolidation, not unlike the one we experienced last year. The market absorbed an avalanche of spot selling from the US and German governments. However, on the brightside, despite this selling, BTC managed to stay mostly in a range. The macro picture has improved significantly coming out of Q3. Going into Q3, there was much anxiety around a potential tick up in inflation, coupled with a slowdown in the global economy. Coming out of Q3, this outlook has shifted - the Fed has embarked on an easing cycle, inflation continues to moderate and the economy appears to be on firm footing.
While the markets were trading sideways, innovation continued to advance. Polymarket became a household name as prediction markets gained prominence with the US presidential election. The Ethereum spot ETF was approved. The SEC approved Bank of NY Mellon to custody crypto. The California DMV tokenized 42M car titles on the Avalanche blockchain. Sony announced its own Ethereum L2, Soneium. These are just a sampling of the news highlights from Q3. Major winners in the liquid token space included SUI (+116% in Q3) and TAO (+112%).
GCR Portfolio Companies Update
We have previously focused our quarterly reviews on highlighting our deal pipeline and funded investments, but since last quarter, we want to take the opportunity to showcase what some of our awesome portfolio companies have been building in the bear market.
GCR now has grown to over 80 portfolio companies that are relentlessly building, we are proud to be backers of these projects building the future of Web3.
Berachain is a high-performance EVM-compatible blockchain built on Proof-of-Liquidity consensus
Berachain’s success hinges on the applications within its ecosystem, and Boyco addresses key liquidity challenges faced by dApps. Boyco, powered by Royco, creates pre-launch liquidity marketplaces, allowing applications to secure Day One liquidity through transparent, negotiated deals with liquidity providers. This approach improves transparency, reduces trust assumptions, and ensures efficient liquidity deployment across Berachain’s ecosystem. By streamlining the liquidity acquisition process, Boyco enables dApps to focus on growth and collaboration rather than competing for limited liquidity. Learn more here
Intella X is a Web3 gaming platform that was started by Neowiz (a Korean gaming company) that partnered with Polygon and many other prominent companies in the Web3 space.
Intella X has partnered with CARV Labs to onboard incubated projects onto its Web3 crowdfunding platform, Alphastarter, offering initial funding for Web3 game developers. Intella X will leverage its expertise in Web2 and Web3 gaming to support project development and publishing. This partnership provides early-stage investment opportunities for the Web3 community while accelerating the launch of innovative gaming projects. Both teams are excited to collaborate and expand the Web3 gaming ecosystem.Learn more here
Jia connects capital to small businesses in every corner of the world.
Jia is committed to helping SMEs grow by offering flexible financing solutions that address cash flow challenges. In a recent interview, Philippines Country Head, Krizanne Ty, explained how Jia’s invoice financing helps businesses by providing early payments on receivables, allowing them to invest in growth without waiting on long payment terms. Jia’s fast, digitalized process simplifies financing and strengthens the local supply chain. Krizanne emphasized the company’s commitment to financial inclusion and announced a special offer for PhilSME members, removing fees to make capital more accessible. Learn more here
Magic Eden is the leading community-centric NFT marketplace.
Magic Eden has launched MagicMoca, a custom NFT launchpad in collaboration with Mocaverse. This platform will feature a curated selection of upcoming NFT projects, including those from Animoca Brands. $MOCA will be a preferred token for minting and collecting, offering a seamless experience for all NFT enthusiasts. Learn more here
Morpho Labs is the most efficient and liquid protocol to supply and borrow assets on Ethereum.
Morpho has upgraded its Rewards system, enhancing scalability and efficiency. MORPHO rewards earned through the Uniform Rewards Program are now visible on the Morpho app. Users will soon be able to claim rewards for the current epoch, with future claims returning to a monthly schedule. However, since MORPHO is currently non-transferable and cannot be bridged, rewards on Base are not yet claimable. MORPHO rewards are calculated daily at 00:00:00 GMT, so users won’t see increases throughout the day. Learn more here
Nubit Bridging Web2 and Web3 with the next-generation consumer network, powered by Bitcoin & backed by Polychain.
Nubit has launched "The Matrix," an all-in-one Minichain ecosystem solution developed with Tomo, now available for developers. Designed to bridge Web2 and Web3, The Matrix provides tools like a Unified Wallet, Minichains, and a Universal Bridge to support scalable, secure app development. With Minichain-as-a-Service and no-code tools, developers can easily create and deploy Web3 applications. This launch aims to onboard the next billion consumer apps into Web3, offering flexibility and innovation for the next generation of consumer applications. Learn more here
Safe the largest smart account ecosystem on the EVM.
Safe{Wallet} now offers enhanced security through its integration with Blockaid’s advanced technology. This update improves real-time transaction simulations, provides more accurate alerts for malicious activity, and introduces address poisoning protection. With access to Blockaid’s expanded threat database and faster security checks, Safe{Wallet} ensures stronger and more reliable protection for your digital assets, all seamlessly integrated for a secure experience.Learn more here
Sweat Еconomy is the original Move-to-Earn. The easiest way to walk into crypto.
The SWEAT team announced a groundbreaking feature: 1 Wallet. 1 Key. 1 Token. This new update provides access to over 17 million token holders across multiple chains. Learn more here
Talent Protocol is a social and economic platform where builders can share their goals and find the support they need to achieve them.
The $TALENT token is set to launch on October 29 at 12:00 PM UTC. With data from over 1 million builders, more than 50 apps, and 30 million API requests, we are becoming an industry standard, adopted by key players like Base and Etherscan. These recent successes highlight the market's strong demand for what we are building, and we are excited to begin the next chapter of Talent Protocol with the $TALENT token. As a Basecoin, $TALENT aligns the interests of builders, apps, and anyone seeking accurate reputation data. Learn more about the utility of $TALENT and the token launch details here.
Q4 2024: A Pivotal Moment for Bitcoin and the Crypto Market
The outlook for the cryptocurrency market in Q4 2024 appears bullish, with several factors indicating a potential rally, particularly for Bitcoin. Analysts predict that Bitcoin may reach new all-time highs during this period, driven by a confluence of favorable conditions.
1. Market Structure Improvements: Recent analyses highlight that improvements in the market structure, including increased stablecoin supply, suggest a boost in trading liquidity. This uptick often precedes significant price movements
2. Interest Rate Cuts: The Federal Reserve's decision to lower interest rates by 50 basis points has led investors to seek riskier assets, which is typically beneficial for cryptocurrencies. This shift in investor sentiment is expected to support price growth for Bitcoin and other digital assets.
3. US Election: The US election sets up as a catalyst with asymmetric upside. If Kamala Harris wins, we may still see a change at the SEC and a moderate shift towards more crypto-friendly policy. However, if Donald Trump wins, there are expectations that he will make a much stronger pivot towards a crypto-friendly US framework.
4. Increased Trading Activity: There has been a notable rise in open interest in Bitcoin futures, reaching levels not seen since early August. This heightened trading activity could indicate a more speculative environment, further driving prices upward.
5. Reentry of Capital: An influx of capital, estimated between $5 billion to $8 billion from FTX creditors releasing funds between December 2024 and March 2025, is expected to bolster the market
Conclusion
Q4 2024 is shaping up to be a critical period for the cryptocurrency market, particularly for Bitcoin, which could see significant price increases amidst a generally optimistic environment. For further insights, you can read more in-depth analyses on the predictions from various sources like CryptoNews and CryptoMode.
