Venture Capital Funding for Cryptocurrency and Blockchain Projects Sees First Quarterly Rise Since 2021
The latest data from Crunchbase has revealed a promising trend in the world of cryptocurrency and blockchain funding. In the first quarter of 2024, Web3 startups managed to secure nearly $1.9 billion in funding across 346 deals, marking a significant 58% increase from the previous quarter.
This rise in funding comes at a time when overall crypto VC interest has been on a downward trajectory. The surge can be attributed to a shift in investor focus towards the long-term potential of Web3, as opposed to the hype-driven investments of recent years.
Notable investments in Q1 included Exohood Labs, EigenLabs, and Freechat, which all secured significant funding rounds. These investments contributed to the emergence of four new Web3 unicorns in the first quarter.
Despite the recent progress, the future of Web3 remains uncertain. Analysts suggest that the next few quarters will be crucial in determining the industry’s direction. Factors such as the approval of U.S. spot Bitcoin exchange-traded funds and the upcoming Bitcoin halving could impact the market.
Overall, the recent increase in funding for cryptocurrency and blockchain projects is a positive sign for the industry. With continued development and investment, the future of Web3 looks promising.
