Markets
Crypto Market Funding in Q1 2024 Rises to $2.4 Billion: Report
Fundraising in the crypto market in the first quarter of 2024 increased to $2.4 billion following a shift in market sentiments amid new inflows. A new Proposal book The report shows a huge jump in quarterly investment numbers in the cryptocurrency market.
According to the report, the sector recorded an inflow of 2.3 billion dollars from 518 businesses in the first three months of the year. This value points to a 40.3% increase in investments compared to the previous quarter. This is a huge leap considering the increase in activity on the network recorded in the fourth quarter of 2023.
The turnover or number of transactions increased by 44.7% in the last quarter. Market valuations have risen this year as asset prices have risen. PitchBook analysts expect to see a steady increase in investment numbers throughout the year.
“for the pre-seed/seed phase it was US$21.8 million; the initial phase, US$72.0 million; and the final stage, US$51.1 million, representing annual increases of 85.5%, 148.3% and 7.6%, respectively.”
EigenLayer leads the pack
According to the report, the infrastructure startup had the highest inflow led by EigenLayer with a Series B funding of $100 million, while Zama, a crypto firm developing fully homomorphic encryption (FHE), saw inflows of $73 million.
However, the biggest deal of the quarter was Together AI raising $106 million, increasing its valuation to $1.1 billion. The deals generated higher valuations for several companies as institutions invested in the crypto market.
“with average values recording US$2.7 million for the pre-seed/seed stage, US$5.0 million for the early stage and US$5.8 million for the late stage, representing an increase of 24.9% , an increase of 25.0% and a decrease of 9.7%, respectively, from the full year 2023,” the report added.
Crypto Markets See Increase in Institutional Flows
The main factor spurring the increase in investment was the bull market in the first quarter, which saw cryptocurrency prices reach levels not seen in months. Site approval Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) has triggered a new wave of institutional investor flows into the crypto market.
Bitcoin price soared above $72,000 attracting investors to the market through the approved window. This bull run has also increased venture capital fund activity.
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