Cryptocurrency projects attracted $2.49 billion in investments in the first quarter of 2024. This is discussed in the Galaxy Research report, writes incrypted.
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Investments in crypto projects
According to experts, in the period from January to March 2024, investors entered into 603 agreements in the cryptocurrency sector. The total number of transactions in this segment increased by 68% compared to the previous quarter, and the volume of financing increased by 29%.
“This is the first increase in both the volume of capital and the number of transactions in the last three quarters. It may indicate that the fourth quarter of 2023 was the bottom of the market. A further increase in indicators will confirm this version,” the analysts said.
According to Galaxy Research, investment dynamics in the first quarter of 2024 were influenced by several factors: the launch of spot Bitcoin ETFs in the United States, the emergence of modular blockchains and second-layer solutions for Ethereum, and the spread of the re-staking mechanism.
In addition, growth The influx of investment was influenced by a number of macroeconomic factors. Let us remember that in February and March 2024, the Fed left the interest rate unchanged, after which Bitcoin broke through $67,000.
Read: Crypto for dummies: 10 useful services for beginners
Meanwhile, the report talks about a weakening correlation between the Bitcoin rate and venture investments in crypto projects. The amount of capital raised is still below the level of 2021 and 2022, when the first cryptocurrency was trading above $60,000.
According to experts, approximately 80% of the capital was directed to early-stage startups. Projects in the infrastructure sector, Web3 and non-fungible tokens (NFTs), lending and trading, decentralized finance (DeFi) and L2 have attracted significant funding.
From a regional perspective, the crypto market has been dominated by the United States. According to the report, American startups participated in 37.3% of all deals and received 42.9% of the capital.
Singapore came in second place with 10.8% of the total number of deals. Also in the top 5 countries with the largest volume of funds raised were the UK, Switzerland and Hong Kong.
Galaxy Digital noted that the conditions for raising funds remain difficult. The greatest pressure on the industry comes from macroeconomic factors and regulatory uncertainty, experts say.
