Crypto VC Surges in Q1 2024 with $2.49B Invested

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As a seasoned crypto investor with a few years under my belt, I’m always keeping an eye on market trends and investment patterns in the cryptocurrency space. The recent surge in venture capital funding for blockchain projects is certainly an encouraging sign after three consecutive quarters of decline. With $2.49 billion raised through 603 deals in Q1 2024, there’s no denying that there’s renewed optimism and confidence in the sector.

In Q1 2024, there was a rebound in cryptocurrency and blockchain investment from venture capitalists, with a total of $2.49 billion raised through 603 deals. This represented a significant surge of 29% in funding and a substantial increase of 68% in the number of transactions compared to the previous quarter, according to Galaxy Research’s data.

The growth in investments within a specific period is linked to the introduction of the Bitcoin ETF and advancements in Bitcoin’s layer-2 solutions and staking. Despite this progress, it falls short of the levels surpassed when Bitcoin reached prices above $60,000. Currently, the Bitcoin price hovers at $63,009.53 with a 4.06% trading volume over the last day.

Crypto VC Surges in Q1 2024 with $2.49B Invested

Approximately 8 in 10 investment dollars went towards early-stage startups, indicating a more conservative strategy from funds towards higher-risk late-stage companies, which saw limited investments from major venture capital firms. The infrastructure sector claimed the largest portion of investment within its industry with a 24% share, fueled by substantial rounds like EigenLayer’s $100 million financing.

As a researcher studying the global crypto venture capital landscape, I’ve discovered that an impressive 37.3% of all venture deals are taking place in the United States.

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2024-05-04 04:36