By
Mayowa Adebajo
May 27th, 2024
The blockchain infrastructure sector attracted over $1 billion in crypto funding in April, closely followed by the DeFi, CeFi, and GamiFi sectors.
As crypto traders closely followed the Bitcoin halving event, venture capital firms were busy raising funds to build the necessary infrastructure to enable mass adoption of digital assets and web3 protocols. According to market data from Rootdata, $1.024 billion was raised by different web3 projects in April, although a slight decline from $1.094 billion recorded in March.
The cryptocurrency market is already in the early stages of a macro bull run that is expected to take place until the end of next year. As Coinspeaker previously explained, the approval of spot Bitcoin ETFs in Hong Kong and the United States will create a ripple effect in the mass adoption of digital assets.
Crypto Fundings in April Under the Scope
In April 2024, seed funding rounds dominated the crypto venture capital market closely followed by strategic and pre-seed rounds. The United States, Singapore, and Britain led other nations with the top fundraisings last month. Moreover, institutional investors in these regions have accelerated the pace of web3 and digital assets adoption.
Following the significant rise of layer-one chains such as Solana (SOL) and Toncoin (TON), more web3 developers are focused on building sophisticated blockchain infrastructure. As a result, crypto venture capital Paradigm led a $225 million funding round for an L1 project developed by Monad Labs in April.
At the beginning of last month, Bitcoin L2 network Menzo announced the completion of a Series A funding round with about $21 million. Another notable web3 funding in April was by Securitize with around $47 million led by BlackRock Inc. (NYSE: BLK).
Other top funded web3 projects in April included Auradine and Cosmos-based L1 project Berachain, which received $80 million and $100 million respectively last month.
Meanwhile, VC Paradigm announced in April that it is seeking to raise a total of $850 million for a new crypto fund. Similarly, Pantera Capital’s Pantera Fund V announced that it is seeking to raise $1 billion geared towards blockchain-based startups.
Market Picture
The crypto market industry slipped by nearly $500 billion in April, representing around 16 percent, to around $2.34 trillion on Monday. After teasing a possible decline in the recent crypto correction, Bitcoin (BTC) price closed last week with a Doji candlestick, signaling a bullish implosion ahead.
Having spiked nearly 3 percent in the past 24 hours leading to the London session on Monday, Bitcoin price is well positioned to rally above $70k this week.
I wanted to post this tomorrow but my excitement won't allow me. $BTC displays a rare candlestick reversal hammer as it did in Jan 2024 which led to a huge breakout upside. https://t.co/sRVtXCsHWL pic.twitter.com/waDeb7ekGa
— Mikybull 🐂Crypto (@MikybullCrypto) May 5, 2024
Nonetheless, an inevitable reversal of Bitcoin dominance, which currently stands around 55 percent, could trigger a rejuvenated alt season. Furthermore, more institutional investors and retail traders are betting on altcoins due to hyper tokenization of real-world assets such as real estate, stocks, and government bonds, among others.