The first quarter of 2024 proved to be a strong period for crypto fundraising, with a total of $2.4 billion secured across 518 deals, marking a 40.3% increase from the previous quarter.
Crypto startup funding has reached an impressive milestone, surpassing $100 billion since May 2014. This achievement reflects the industry’s growing maturity and potential despite its volatility and regulatory challenges.
Data from DefiLlama shows this significant increase. Starting at $17.14 million in May 2014, just before Ethereum launched, funding has reached $101.35 billion by June 16, 2024. This is about a 5,898-fold increase in ten years, showcasing the rapid innovation and adoption in the crypto industry.
October 2021 marked a peak in funding, with over $7 billion raised. While May 2024 saw a notable increase from a decade earlier, it did not surpass the previous month’s total or the all-time high. This suggests the market has high growth potential but remains prone to fluctuations.
US Leads Crypto Startup Funding
The United States takes the lead in crypto startup funding, contributing nearly half of all investments. Other notable players include the United Kingdom, investing 7.7%, and Singapore 5.7%, according to Q2 2023 figures. This geographically diverse investment landscape underscores the global appeal of the cryptocurrency sector.
Several high-profile funding rounds in late 2023 and the first half of 2024 further solidify investor confidence. Together.AI, Wormhole, Totter, and Eigenlayer all secured significant investments exceeding $100 million each. Additionally, Swan Bitcoin and Blockchain.com’s funding rounds highlight the continued interest in various segments of the crypto ecosystem.
The first quarter of 2024 proved to be a strong period for crypto fundraising, with a total of $2.4 billion secured across 518 deals. This represents a remarkable 40.3% increase compared to the previous quarter and reflects the positive shift in market sentiment. The surge in on-chain activity observed in Q4 2023 likely contributed to this significant leap forward.
Institutional Investors Enter the Ring
The long-awaited approval of spot Bitcoin ETFs by the SEC in January 2024 has undoubtedly played a crucial role in attracting institutional investors. The approval decision simplifies investors’ access to cryptocurrencies, potentially leading to a further influx of capital into the industry.
While the crypto market has reached $100 billion in funding, it still faces challenges. Regulatory clarity and market stability are crucial for continued growth. Despite these hurdles, the future of crypto startups looks promising, driven by innovation, global adoption, and growing institutional involvement.
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