Here are the 6 biggest crypto VC deals in Q1 2024 and end of 2023
Venture capital activity in the cryptocurrency industry increased in early 2024, indicating a revival of investor optimism following the bear market.
According to Chainalysis' “2024 Crypto Spring Report,” Q1 2024 was the first quarter to see a quarter-on-quarter increase in crypto investment since early 2023. On a firm basis, dynamic changes can be a sign of a shift in investment. The landscape in the crypto industry.
Overall, 2023 saw a steep drop in capital for crypto companies in line with the crypto winter that began in 2022. After reaching $10 billion in Q4 2022, quarterly crypto funding fell below $2.0 billion in Q2 2023.
In Q1 2024, crypto VC volumes increased for the first time since 2022, reaching $2.5 billion. Following a sharp decline in Q4 2022, the median deal volume has rebounded, hovering steadily over the $10 million mark.
While VC activity in crypto will generally slow down in 2023, the industry has seen several notable deals in excess of $100 million, including early-stage deals in Q3 2023 and Q1 2024.
According to Chinalysis, the largest deals were made by blockchain interoperability project Wormhole and decentralized physical infrastructure network (DePIN) Together.ai.
Cross-chain protocol Wormhole raised $225 million in investment at a valuation of $2.5 billion in November 2023, and Together.ai also raised a total of $225 million, according to the report.
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Crypto asset management and tax platform Swan Bitcoin has received a $165 million investment by the end of 2023.
Totter, an open-source cloud storage platform, and Ethereum protocol EigenLayer are also on Chinalysis' list of major VC deals, with $101 million and $100 million respectively.
The boom in crypto VC deals comes amid a significant surge in the cryptocurrency market in early 2024. Bitcoin (BTC) hit a new all-time high of $73,600 in mid-March. The rally is mainly due to the appearance of Bitcoin exchange-traded funds in the United States in January 2024.
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