TLDR:
Key Points:
- Venture capital funding into crypto surged by 52.5% in March, totaling $1.16 billion.
- Infrastructure projects received the most funding, followed by DeFi and CeFi projects.
The month of March saw a significant increase in venture capital funding in the crypto space, with over $1.1 billion invested across 180 deals. This marked a 53% surge from the previous month, with the majority of investments going towards infrastructure and decentralized finance projects. The largest funding round of the month was conducted by Ethereum layer-2 blockchain Optimism, which raised $89 million in a private token sale.
Overall, the United States was the hub for most funded projects, although they only accounted for less than 10% of the total deal count. The top sectors that received the most funding in March were infrastructure projects, DeFi, and CeFi, with a total of $1.16 billion invested. This marked the first time since November that monthly VC funding in crypto surpassed $1 billion.
Leading VC firms like Andreessen Horowitz and Galaxy Digital have been actively investing in the crypto space, with a focus on Web3 gaming and consumer apps. The increase in VC funding can be attributed to renewed enthusiasm for crypto, driven by factors such as the launch of spot Bitcoin exchange-traded funds (ETFs) in the U.S.
Looking ahead, the trend of increasing VC funding in the crypto space is expected to continue, as more investors show interest in backing innovative projects within the industry.
