Venture capital (VC) funding flowing to the crypto space showed a positive shift in the first quarter of 2024, breaking a two-year slump.
Data analysis platform Crypto Koryo posted a report on X, highlighting that the total amount invested and the number of projects that received VC funding have increased since Q4 2023.
The platform noted a 38% increase in the funds invested in the quarter.
In addition, there was a 49% increase in the number of projects that received funding. The number of projects receiving funding has not been seen since Q4 2021.
This means that crypto VC funding is going into an upward trajectory.
Crypto Koryo believes this could be “the start of a new wave.” The analysis platform noted that the recent uptrend shows similar patterns to the fourth quarter of 2020 before massive VC investments flowed into the space.
Crypto Koryo also highlighted that, unlike previous quarters where banks and non-crypto VCs led the investments, this quarter showed more interest from crypto-focused venture firms.
Crypto-native VCs like Andreessen Horowitz Crypto, OKX Ventures, Multicoin Capital, Paradigm and Polychain dominate the funds invested in the quarter.
In March alone, crypto VC funds invested over $1.1 billion across 180 investments. VC funding in crypto jumped by 52.5% month-on-month in March, with investments flowing into infrastructure and decentralized finance projects.
Related: Venture capital exec says ‘lack of innovation’ drives funding away from crypto
The uptick in funding in Q1 2024 also follows an upward momentum from Q4 2023.
In Q1 2023, crypto VC investments showed a 2.5% increase compared to Q3 2023. This marked the first VC investments in crypto projects that have risen since March 2022.
Crypto had a tough year in 2022, with a decline in venture capital funding flowing into the sector accompanied by bleak market conditions. The year showed consecutive quarterly drops when it came to venture capital investments.
Magazine: Asia Express Google sues crypto app scammers, Crypto.com in Korea: Asia Express