Cryptocurrency Projects Raised 3.19 Billion Dollars: Which Area Was Most Preferred?

Despite the stagnation in the cryptocurrency market, investors continue to support entrepreneurs.

According to Galaxy Digital research, venture capital invested $3.19 billion in cryptocurrency and blockchain companies in the second quarter of 2024.

“The situation in crypto venture capital continues to improve, albeit well below bull market levels in 2021-2022,” Galaxy Digital analysts said.

Increased compared to the previous quarter

The median amount of investment in cryptocurrency and blockchain projects increased from $3 million to $3.2 million.

“While mainstream venture capitals have largely watched from the sidelines, crypto-focused venture capitals are now in a more competitive environment, giving entrepreneurs more leverage when negotiating,” Galaxy Digital said.

The total number of deals made during the second quarter increased by 8% compared to the previous quarter, reaching 682. A record was broken with 775 agreements in the second quarter of 2022.

Which areas receive the most investment?

In the second quarter, the most investment was made in projects in the Web3 field with 495.5 million dollars. One of the biggest reasons for this was the $150 million investment in Farcaster.

During the same period, Layer 1 projects received investments of $371 million. Bitcoin-based Layer 2 projects collected $94.6 million, an increase of 174% compared to the previous quarter.

Most of the investments were made in projects that were at an early stage. These constituted 78 percent of the total number of agreements. 13 percent came from pre-seed investments.

Galaxy Digital said, “The fact that there is still interest in early-stage deals is important for the long-term health of the cryptocurrency ecosystem. "While some late-stage companies have difficulty finding capital, entrepreneurs can find investors looking for new and innovative ideas," he said.