- The value of each deal was often higher even though there were fewer of them.
Across 503 agreements, cryptocurrency firms raised $2.7 billion in funding in the second quarter of 2024, a modest rise in cash raised amid a discernible fall in deal volume.
This is a 2.5% increase in overall investment over the previous quarter, despite a 12.5% drop in the number of acquisitions, per a PitchBook study.
According to the research, the average deal value increased even though there were fewer acquisitions completed.
Cryptocurrency Investments Should Increase
Analysts at PitchBook observed that if investor opinion toward cryptocurrencies remains positive and there are no significant market disruptions, the rate and amount of investments are probably going to increase throughout the remainder of the year.
This optimistic view indicates a cautious but cautious return of confidence among cryptocurrency investors.
A parallelization Layer 1 platform called Monad raised substantial rounds of funding during Q2, leading the way for infrastructure businesses. Monad secured $225 million in Series A funding.
The $100 million Series B round was followed by the DeFi-specific Layer 1 platform Berachain, while the bitcoin restaking platform Babylon raised $70 million in an early-stage round.
These significant expenditures highlight how crucial infrastructure development is becoming to the cryptocurrency sector.
Two other noteworthy investment rounds were a $140 million early-stage round for the blockchain-based gaming platform Zentry and a $150 million Series A deal for Farcaster, a platform that attained a post-money valuation of $1 billion.
The study also showed that, in comparison to 2023, the median pre-money valuation for seed and early-stage investments was $23 million for seed and $63.8 million for early-stage investments.
However, there was a decrease in late-stage valuations, with the median amount falling to $40.8 million.
While late-stage acquisitions seem to be less competitive, the shift in value patterns indicates a highly competitive market for early-stage investments.
Funding for Crypto Startups Exceeds $100 Billion
Over the last ten years, funding for cryptocurrency businesses has increased significantly, and since May 2014, they have surpassed the remarkable $100 billion milestone.
With more than $7 billion raised in October 2021, the month marked the height of cryptocurrency startup fundraising.
$3.67 billion was the second-highest financing amount ever reported in February 2022.
According to recent study, investors in the US account for about half of all bitcoin funding.
The remaining investments are split between other nations; according to data from the second quarter of 2023, the United Kingdom makes for 7.7% and Singapore accounts for 5.7%.
Notably, between late 2023 and the first half of 2024, a number of well-known fundraising transactions have occurred.
collectively.Wormhole, a cross-chain protocol, and Totter, an open-source cloud storage company, raised $225 million and $101 million, respectively, while Eigenlayer and Totter raised $100 million and $101 million.
Other noteworthy fundraising rounds include Blockchain.com’s $110 million and Swan Bitcoin’s $165 million raise.
These substantial investments demonstrate the public’s ongoing faith in and interest in the bitcoin space.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
