Tech
Crypto Venture Capital raises over $1 billion in two consecutive months
For the first time since the start of the cryptocurrency winter of 2022, venture capital funding is finding its way back into the cryptocurrency space.
According to reports, the cryptocurrency industry has seen over $1 billion in venture capital funding for two months. This is the highest funding since late 2022, after the collapse of FTX, which intensified the cryptocurrency crisis and spurned investor interest.
Increase in Crypto Venture Capital funding
Second data by RootData, $1.02 billion was raised in 161 cryptocurrency investment rounds in April. While this figure represents a slight decrease from the previous month’s total of $1.09 billion, spread across 186 rounds, it remains a noteworthy achievement.
It is the first time since October/November 2022 that the cryptocurrency sector has recorded funding exceeding the $1 billion mark for two consecutive months. This consistency shows continued investor interest in blockchain and cryptographic space.
Among these notable investments made in April are a $47 million BlackRock-led support in Securitize, a company specializing in the tokenization of real-world assets.
Additionally, Monad, a promising new layer 1 blockchain often nicknamed the “Solana killer,” insured a massive investment of $225 million. This investment has gained backing from heavyweights such as Paradigm and Coinbase Ventures.
Another notable venture includes Auradine, a blockchain infrastructure startup that has received $80 million in funding. Additionally, Berachain, a layer 1 blockchain built on the Cosmos network, secured a substantial investment of $100 million over the same period.
Following this development, funding for the blockchain industry since June 2014 has exceeded $100 billion. This figure was achieved through 5,195 financing rounds, as a relationship from the states of DeFiLlama.
Meanwhile, venture capital funding in 2024 shows a clear trend, with blockchain infrastructure companies leading the way with $1.7 billion in investments. Decentralized finance (DeFi) protocols were close behind with $626 million in funding.
Decentralized Autonomous Organizations (DAOs) received the least funding, with only $3 million raised this year.
Funding trajectory in the cryptocurrency sector
The cryptocurrency industry saw an inflow of over $3.67 billion across 604 funding rounds in 2024. This positive trajectory could potentially surpass the $9.3 billion raised the previous year (2023).
This increase in investment activity is in line with the ongoing efforts of venture capital firms such as Pantera Capital and Paradigm. In particular, these two companies are actively seeking large sums $1 billion AND $850 million for new crypto-focused funds.
If successful, Pantera Capital’s $1 billion funding would mark the most significant fundraising round for the cryptocurrency sector since May 2022, when Andreessen Horowitz raised a staggering $4.5 billion.
Interestingly, despite the positive mood in the cryptocurrency sector, Andreessen Horowitz has decided not to inject additional funds into his cryptocurrency-focused fund. Instead, the company has diversified its investment strategy, allocating resources to the artificial intelligence and gaming sectors.
However, while there has been a recent increase in venture capital funding for cryptocurrency-related projects, these are still significantly below the peak levels seen in 2021 and 2022. During 2021 and 2022, the industry testified the impressive $38 billion and $27.3 billion raised respectively.
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