TLDR:
- Venture capital funding in the crypto space surged in Q1 2024, breaking a two-year downtrend.
- Total amount invested and number of projects receiving funding increased significantly.
In the first quarter of 2024, VC funding for crypto projects saw a notable 38% rise in funds invested, indicating renewed investor confidence in the industry. The number of projects securing funding also increased by 49%, a level not seen since Q4 2021. This positive trend has led experts to believe that a new wave of investments might be on the horizon. Notably, prominent crypto-native VCs like Andreessen Horowitz Crypto and Multicoin Capital have emerged as key players in this surge of funding.
In March alone, over $1.1 billion was allocated across 180 investments, with a focus on infrastructure and decentralized finance. This increase in funding follows the positive momentum seen in Q4 2023, marking the first rise in VC investments since March 2022. Furthermore, digital asset custodians like Balance and Korea Digital Asset have reported significant growth in assets under custody, signaling a potential surge in crypto funds in the next five years.
Overall, the surge in VC funding and assets under custody reflects a positive outlook for the crypto industry, with experts predicting substantial growth in the coming years.
