On August 10, Adam Cochran, a partner at Cinneamhain Ventures, posted on social media that there is a subtle reason why the pace of investment in cryptocurrencies by venture capital firms has slowed significantly. Most venture capital firms have limited partners (LPs), and LPs are primarily interested in returns beyond index funds. But in the medium term, just holding Bitcoin and Ethereum can already "easily beat" index funds for risk returns. This allows venture capitalists to stay on the sidelines of Bitcoin and Ethereum, waiting for safer and more profitable opportunities, rather than taking as much early-stage risk on startups as they do in other industries, where there are no assets that offer the same returns as BTC or ETH. Adam Cochran said that during the last crypto cycle (2020-2024), venture capital firms "seemed to be active", hoping to get rich with participants by investing in apps that "have exploded". But several known narratives (NFTS, AMM forks, defi, L2s) have come to an end, and it's not clear what to do next.