The flow of venture capital into the blockchain space plays a significant role in shaping the DeFi landscape. Emerging blockchains that attract significant funding can use that capital to incentivize developers, build out their infrastructure, and market their platforms. This can create a self-fulfilling prophecy, where well-funded chains attract more developers, which in turn attracts more users and capital, further solidifying their position. Ethereum, while well-established, is not immune to this dynamic. If venture capital shifts significantly towards newer, more innovative chains, it could accelerate their growth and pose a serious threat to Ethereum’s dominance. The money flowing into these projects is a leading indicator of where the industry might be heading.