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The financial sector dominates Q1 crypto funding with inflows of $323 million
June 10, 2024 09:19 am | 2 minute read
Crypto venture capital funding in the first quarter saw the financial sector cash in the greatest number of investments.
What happened: Tom DunleavyManaging Partner at MV Capitalecites data from blockchain analytics firm Messari, revealing that transaction volume decreased by 8.8% month-on-month (MoM) to $1.28 billion. The number of deals saw a slight increase of 0.7%, maintaining near yearly high levels with a total of 303 deals.
The financial sector emerged as the most active, accounting for 25.2% of the total fundraising volume, with $323 million secured.
The solid performance of this sector highlights its critical role in the evolving crypto ecosystem.
Notable offers include Securitisewhich raised $47 million, reflecting significant investor confidence in financial technologies in the cryptocurrency space.
Q1 Crypto VC Funding Update
Transaction volume fell 8.8% month-on-month to $1.28 billion. However, the number of deals increased by 0.7% month-on-month, maintaining near yearly high levels with 303 deals.
Major deals include Farcaster ($150 million), Polymarket ($70 million), Babylon ($70… pic.twitter.com/zVMFDc6VWa
Increase in agreements in the consumer goods sector
Interestingly, the consumer sector saw explosive growth in deal volume, up 248.4% month-on-month to $246 million.
This dramatic increase was primarily driven by Farcasterthat’s an increase of $150 million.
Such significant investments highlight the growing interest and potential within consumer-facing crypto projects.
Read also: Bitcoin to Peak at $120,000 by End of 2024, Major Alternative Season to Follow: Bitfinex
Key agreements and investments
Among the most important deals of the first quarter are Farcaster ($150 million), Polymarket ($70 million), Babylon ($70 million) and Humanity Protocol ($30 million).
These investments reflect a broad range of interests and innovations in the cryptocurrency space, from decentralized social networks to prediction markets and identity verification protocols.
Sustained high levels of trading activity, despite a decline in overall funding volume, suggest a robust and resilient investment environment.
The leading role of the financial sector indicates a continued focus on improving and expanding financial technologies within the cryptocurrency sector.
These trends and their broader implications for the digital assets market will be key topics at the next Benzinga The future of digital assets event on November 19th.
Read next: Can Bitcoin Reach $83,000? Key factors needed for a breakout: 10x research
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