Markets
Crypto Venture Funding Surges to $3.2 Billion – Here’s Where Investors Are Rushing – DL News
- The 28% increase in crypto venture funding is a far cry from the bullish rallies of a few years ago.
- Galaxy analysts said sentiment was rising and highlighted the sectors that attracted the most interest.
Venture capitalists continue to invest billions in cryptocurrencies, according to a report from Galaxy Digital released Wednesday.
Crypto startups raised $3.2 billion in the second quarter, a 28% increase from the $2.5 billion raised in the first quarter.
Although it is still a far from there Of the nearly $10 billion invested in crypto projects in Q2 2022, “crypto venture capital sentiment continues to improve,” Galaxy Digital head of research Alex Thorn and research analyst Gabe Parker wrote in the report.
The rebound in VC interest in cryptocurrencies continues the trend seen earlier this year, which mirrors rising cryptocurrency prices.
But while Bitcoin hit an all-time high in March, crypto VCs have failed to match the enthusiasm of the broader market, especially as Silicon Valley continues to The buzz around AI.
Web3, Layer 1 and Layer 2 Bitcoin
Of the $3.2 billion invested in crypto, investors focused primarily on web3 projects.
Startups that worked with Web3, DAOs or decentralized autonomous organizations, the metaverse and gaming raised 24% of the venture capital, or $758 million.
The $150 million fundraising for Farcastera social media protocol, was the largest in the category.
Join the community to receive our latest stories and updates
Layer 1 and Bitcoin Layer 2 has also attracted significant capital, according to Galaxy Digital.
The $225 million fundraising for Monad Labs, which aims to create a faster version of Ethereum compatible with Ethereum’s coding language, was the largest fundraising of the quarter.
Berachain, another Layer 1, raised $100 million at a $1.5 billion valuation, according to Bloomberg.
Bitcoin’s Layer 2s, or blockchains built on top of Bitcoin’s that aim to process transactions more efficiently, have also attracted increased interest from investors.
These new protocols have raised nearly $95 million, an increase of 174% compared to the first quarter.
In total, Galaxy Digital recorded 577 crypto deals in the second quarter, with early-stage deals accounting for nearly 80% of the total funding.
Ben Weiss is a Dubai correspondent for DL News. Got a tip? Email him at bweiss@dlnews.com.