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Venture Capital Funding Surges in Crypto Space
Recent data from Crypto Koryo reveals a significant surge in venture capital (VC) funding within the crypto space during the first quarter of 2024. This surge marks a notable shift from the two-year downtrend previously observed.
Key Highlights:
- Total amount invested in crypto projects increased by 38% compared to the previous quarter.
- Number of projects receiving VC funding saw a substantial 49% increase, reaching levels not seen since Q4 2021.
New Wave of Investments Expected
Crypto Koryo suggests that this positive trend may signal the beginning of a new wave of investments in the crypto industry. The recent uptick mirrors patterns observed in Q4 2020, which preceded a significant influx of VC investments into the sector.
Prominent Players in VC Investments
Leading crypto-native VCs such as Andreessen Horowitz Crypto, OKX Ventures, Multicoin Capital, Paradigm, and Polychain have emerged as dominant players in the funds invested during the quarter.
March Highlights
In March alone, over $1.1 billion was allocated across 180 investments by crypto VC funds, reflecting a 52.5% month-on-month increase in VC funding for crypto projects. The focus was primarily on infrastructure and decentralized finance.
Positive Momentum Continues
The upswing in funding during Q1 2024 follows the positive momentum witnessed in Q4 2023. Compared to Q3 2023, Q4 2023 saw a 2.5% increase in crypto VC investments, marking the first rise since March 2022.
Growth in Crypto Assets Under Custody
Balance, a digital asset custodian in Canada, and Korea Digital Asset (KODA) in South Korea have both reported significant growth in assets under custody amid the recent recovery in crypto markets.
Analysts predict that crypto funds could reach $500 billion to $650 billion within the next five years, showcasing a substantial leap from the current valuation of around $50 billion.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
