Crypto venture capital investments were on the rise for the second month in a row in May despite the generally declining economic backdrop. Funding amounts surged 34% from April, and the number of individual deals jumped 62%, according to data from Cointelegraph Research’s Venture Capital Database.

Though inflation in the United States cooled from 4.9% in April to 4% in May — down from 9.1% in the summer of 2022 — the U.S. Federal Reserve still raised interest rates 10 consecutive times. Decreasing inflation tends to build trust among investors that inflation is controllable and that Federal Reserve measures will become softer, but the market is still in the waiting phase.