Markets
Crypto Market Funding in Q1 2024 Hits $2.4 Billion: Report
Crypto market fundraising in the first quarter of 2024 jumped to $2.4 billion following a change in market sentiment amid new inflows. A new Presentation book The report shows a massive quarter-over-quarter increase in the number of investments in the cryptocurrency market.
According to the report, the sector saw an inflow of $2.3 billion from 518 transactions in the first three months of the year. This figure suggests an increase in investments of 40.3% compared to the previous quarter. This is a huge step forward considering the increase in on-chain activity seen in Q4 2023.
The trading volume or number of transactions increased by 44.7% last quarter. Stock market valuations have risen this year as asset prices have risen. PitchBook analysts expect a steady increase in the number of investments throughout the year.
“for the pre-seed/seed stage, $21.8 million; the first stage, $72.0 million; and advanced stage, $51.1 million, representing annual increases of 85.5%, 148.3% and 7.6%, respectively.
EigenLayer leads the pack
According to the report, infrastructure startup saw the highest influx, led by Clean diaper with $100 million in Series B funding, while Zama, a crypto company developing fully homomorphic encryption (FHE), saw inflows of $73 million.
However, the largest deal of the quarter was Together AI, which brought in $106 million, increasing its valuation to $1.1 billion. The transactions were accompanied by higher valuations for several companies as institutions invested in the crypto market.
“with median figures of $2.7 million for pre-seed/seed stage, $5.0 million for early stage and $5.8 million for late stage, representing an increase of 24.9%, an increase of 25.0% and a decrease of 9.7%. , respectively, from the year 2023″, adds the report.
Crypto Markets See Rise in Institutional Flows
The main factor behind the surge in investment was the first quarter bull market, which saw cryptocurrency prices reach highs not seen in months. Approval of the spot Bitcoin ETF by the United States Securities and Exchange Commission (SEC) has sparked a new wave of institutional investor flow into the crypto market.
Bitcoin price surged above $72,000, attracting investors into the market via the approved window. This upward trend has also increased the activity of venture capital funds.
Read also: XRPL startup XPMarket launches token exchange after distribution error