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Cryptowire: Crypto Market Fundraising Surges to $2.4 Billion in Q1 2024
The crypto market has experienced a significant surge in fundraising, reaching a whopping $2.4 billion in the first quarter of 2024, fueled by a shift in market sentiment and fresh inflows.
Increased Investment Activity in the Cryptocurrency Sector
According to a recent analysis by PitchBook, a leading data provider for private and public market investors, there has been a substantial increase in investment activity within the cryptocurrency sector compared to the previous quarter. The bull market witnessed during Q1 played a pivotal role in driving the surge in investments.
VC Funds Participation in Bull Market
Venture capital funds actively participated in this bullish run. A total of 518 deals amounting to $2.3 billion were closed in the first quarter of the year within the cryptocurrency industry, reflecting a remarkable 40.3% increase in investments compared to the previous quarter.
Market Valuations and Future Growth
As asset values increased, market valuations soared throughout the year, setting the stage for a promising investment climate. The experts at PitchBook anticipate continued growth in investment activity throughout the remainder of the year.
Noteworthy Fundraising Examples
Noteworthy examples of successful fundraising within the cryptocurrency market include Zama, EigenLayer, and Together AI, which raised significant amounts, propelling their valuations to impressive levels.
VC Funding Surpasses $1 Billion for Second Consecutive Month
For the second month in a row, crypto venture capital funding has exceeded the $1 billion mark, highlighting continued investor interest in the industry. April witnessed $1.02 billion in funding spread across 161 investment rounds, slightly down from March’s $1.09 billion across 186 rounds.
Recent Developments in Digital Asset Custody
Balance, a digital asset custodian based in Canada, has once again achieved $2 billion in assets under custody (AUC) amid the recent recovery in crypto markets. Korea Digital Asset (KODA), the largest institutional crypto custody service in South Korea, has also seen remarkable growth in crypto assets under its custody.
