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Analytic platform WuBlockchain unveiled its September cryptocurrency venture capital report on Monday. The stats indicated that VC funding for crypto and Web3 enterprises continued to dwindle as the digital assets space experienced escalated bearishness.
Crypto and Web3 funding distresses
The report shows the crypto venture capital space saw publicly revealed investment projects increasing by 3% from August 2023 to 77 in September. Nonetheless, this represented a 44% dip from September 2022 – when 138 projects raised funds.
Further, the crypto VC raised $510 million in September, representing a 24% decline from August’s $670 million and a 72% plunge compared to $1.84 billion in September 2022.
Meanwhile, infrastructure and DeFi projects dominated, representing around 30% and 22% of September financing, respectively. CeFi projects followed at 4%, whereas GameFi and NFT accounted for 10%.
Source – WuBlockchain
TechCrunch revealed declined Web3 funding as the cryptocurrency market endured an intensified winter. Investments into new Web3 projects plummeted in Q3 compared to Q2 – a seventh consecutive quarter of declines since the Q4 2021 venture funding peak.
The startups raised approximately $1.3B during the third quarter, a decline from $2B in Q1 & Q2. Also, crypto raised $4.5B in the third quarter of 2022, significantly higher than Q3 2023.
Meanwhile, DeFiLlama data shows cryptocurrency funding increased to $353M in September, a 25% surge from August.
Source – DeFiLlama
Nonetheless, investments plunged by 78% over the past twelve months (September 2022), when the sector attracted $1.59B in investments.
While venture funding for crypto and Web3 startups remains down, DeFiLlama confirms that some take bear markets as opportunities to build. Savvy players trust things will always turn around for the better.
The post Crypto and Web3 Venture Funding dwindle amidst prolonged bear markets appeared first on Invezz.
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