The crypto sector raised $2.7 billion in Q1 2023 despite a 12.5% decline in deal counts, according to a report from PitchBook. Investors are concentrating capital in fewer opportunities, notes senior analyst Robert Le.
The largest deals include $225 million for Monad and $150 million for Farcaster. Total funding is expected to grow 20% in 2024 to $12-14 billion.
Le predicts a consolidation of blockchain networks, with 3-5 platforms like Solana and Bitcoin dominating. Most projects will become “zombie chains” with minimal activity.
DePIN stands out as a promising sector, attracting not only crypto enthusiasts but also new users.