A Bullish Year With Strong Momentum
According to RootData statistics, the number of publicly disclosed cryptocurrency venture capital (VC) investment rounds in 2024 was 1,530, an increase of 25.1% from the previous year.
Total fundraising this year reached $10.04 billion, an increase of 7.59% from 2023.
Cryptocurrency investment sees healthy surge
venture capital activities An important indicator of the health of the cryptocurrency industry, current levels paint an optimistic picture. Initially, the strongest fundraising occurred in the first half of the year, followed by a steady decline in subsequent months. However, since Trump was re-elected as President of the United States, This trend is reversing due to new inflows.
Investment rounds over $20 million declined compared to the previous year, but all other cryptocurrency funding sizes between $1 and $20 million increased. Additionally, seed funding represents a smaller proportion of total funding rounds, while strategic funding will increase in 2024.
Although the amount of investment funds in the cryptocurrency space has increased, its industry configuration has undergone some huge changes. To be fair, blockchain infrastructure has undoubtedly been the largest recipient of venture capital over the past two years.
However, Decentralized Finance Funding has almost doubled, firmly occupying second place. CeFi, on the other hand, dropped to fifth place.
Stripe’s transition protocol leads the way
The largest single investment occurred in October, thanks to Stripe, a large-scale payment platform. In a “landmark” deal aimed at boosting the company’s activities in the crypto space, Stripe Acquired Bridge for $1.1 billion. This huge amount of money easily tops the list of largest fundraisings, more than double that of the second place.
“The $1 billion acquisition of Bridge by Stripe sends a signal to VCs: Stablecoin Startups that were previously underfunded due to a lack of early-stage token liquidity now have a clearer path to a large-scale exit. Expect more funding and more entrepreneurs to build around stablecoins. ” wrote Alliance founder Wang Qiao DAO.
Another premium cryptocurrency investment is Australian miner Iris Energy, Received $413 million in July. The company plans to use the venture capital funding to increase its operational capabilities, adding 30 EH/s and 510 megawatts (MW) of data centers by 2024. Iris is also building a 1,400-megawatt mining operation in West Texas.
avalanche, A famous blockchain projectTowards the end of the year, a large amount of venture capital funding was also introduced. This has contributed to the trend of blockchain infrastructure receiving more fundraising funding than any other cryptocurrency/Web3 space. December 11, Conduct a private locked token saleamong which institutions such as Galaxy Digital contributed the most.
All in all, 2024 is going to be a bull year for cryptocurrency investing. Since the approval of Bitcoin ETFs began this year, institutional adoption has surged across the space. Latest Survey of the Cryptocurrency Community This indicates a high level of personal optimism, and this bullish sentiment is reflected in these intensive investments.
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