ChainCatcher news, according to The Block, despite the market downturn, Galaxy Digital reported that the crypto venture capital market continued to pick up in the second quarter of 2024. Web3, Layer 1 and Bitcoin Layer 2 were the most prominent investment categories this quarter. Crypto and blockchain companies received $3.19 billion in venture capital investment in the second quarter, a slight increase from $3.16 billion in the first quarter. The median deal price rose from $3 million to $3.2 million, and the estimated value jumped from $19 million to $37 million. There were 739 crypto venture deals in the second quarter, an 8% increase from the first quarter. The Web3 space attracted $495.5 million in investment, including $150 million in financing for Web3 social media platform Farcaster. Layer 1 raised $371 million, while Bitcoin Layer 2 projects received $94.6 million in investment, a 174% year-over-year increase.
While the U.S. still dominates in terms of deal count and investment dollars, regulatory headwinds could force more companies to move overseas. Analysts note that the multi-year correlation between Bitcoin prices and venture capital has broken this year, and despite Bitcoin's 43% year-to-date gain, investment capital remains well below levels seen during the 2021-2022 highs. Analysts suggest that a crypto recovery in the second half of the year could spark more venture capital activity.