New York, Saturday, August 17, 2024 – Cryptocurrency startups raised $2.7 billion in venture capital during the second quarter of 2024, marking a 2.5% increase from the previous quarter and a 9.8% rise compared to Q2 2023, multiple reports said.
However, the number of deals completed dropped by 12.5%, reflecting a cautious approach from investors amid a challenging market environment.
The market’s slowdown follows Bitcoin’s surge to an all-time high in Q1 2024, after which the crypto sector entered a consolidation phase, typical after Bitcoin halving events.
Despite the increase in funding, venture capitalists are becoming more selective, focusing on specific opportunities rather than broad infrastructure investments.
A partner at Dragonfly crypto venture fund noted that VC investing in crypto reached a peak in March and April but softened in later stages.
The trend of rising valuations continued in Q2, driven by founders capitalizing on secondary markets.
While there is a growing fatigue among investors in infrastructure projects, there remains interest in consumer-focused applications.
MegaETH, a blockchain startup, secured $20 million in seed funding in June, citing ongoing demand for high-performance blockchains.
In May, social media platform Farcaster attracted a $150 million investment, the only major deal in the crypto application space.
