According to Cointelegraph: Crypto-related companies saw an increase in venture funding in Q4 2023, with a total of $1.9 billion invested. This marks a 2.5% rise from Q3 2023 and is the first time VC investments in crypto startups have increased since March 2022, according to a report by PitchBook.

Screenshot of crypto early-stage VC deals in Q4 2023. Source: PitchBook

Most significant investments were made into companies focused on financial and technological solutions, such as tokenizing real-world assets like real estate and stocks, and developing decentralized computing infrastructure. Notable fundraising included $165 million by Swan Bitcoin, $100 million by Blockchain.com, and $225 million by open-source blockchain development platform Wormhole, attaining a valuation of $2.5 billion.

The increased interest in crypto is largely attributed to the launch of the first spot Bitcoin ETFs in the United States in January. Despite facing previous challenges, such as reduced VC funding and the collapse of several major cryptocurrency firms in 2022, the crypto industry experienced a positive turnaround in 2023, marked by global adoption stories and the entry of traditional finance giants like BlackRock into the crypto space.