Markets
Cryptocurrency Market Funding in Q1 2024 Reaches $2.4 Billion: Report
Fundraising on the cryptocurrency market in the first quarter of 2024 rose to $2.4 billion following a change in market sentiment following new inflows. A new PitchBook The report shows a huge increase in the number of investments on a quarterly basis in the cryptocurrency market.
According to the report, the sector saw an inflow of $2.3 billion from 518 deals in the first three months of the year. This data indicates an increase in investments of 40.3% compared to the previous quarter. This is a huge step forward considering the increase in on-chain activity seen in Q4 2023.
Deal volume or the number of transactions increased 44.7% last quarter. Market valuations have risen this year as asset prices have risen. PitchBook analysts expect to see a steady increase in the number of investments throughout the year.
“for the pre-seed/seed phase it was $21.8 million; the initial phase, $72 million; and final phase, $51.1 million, representing year-over-year increases of 85.5%, 148.3%, and 7.6%, respectively.
EigenLayer leads the pack
According to the report, the infrastructure startup saw the highest influx led by Autostratus with Series B funding of $100 million, while Zama, a cryptocurrency company developing fully homomorphic cryptography (FHE), saw inflows of $73 million.
However, the biggest deal of the quarter was Together AI, which brought in $106 million, boosting its valuation to $1.1 billion. The offers have come at higher valuations for several companies as institutions have invested in the cryptocurrency market.
“with median figures of $2.7 million for the pre-seed/seed phase, $5.0 million for the seed phase and $5.8 million for the final phase, representing an increase of 24.9 %, an increase of 25.0% and a decrease of 9.7%, respectively, from full-year 2023,” the report added.
Cryptocurrency markets are seeing an increase in institutional flows
The main factor spurring the increase in investment was the first quarter bull market, which saw cryptocurrency prices reach levels not seen in months. The approval of the commercial Bitcoin ETFs by the US Securities and Exchange Commission (SEC) has triggered a new wave of flows from institutional investors into the cryptocurrency market.
The price of Bitcoin rose above $72,000, attracting investors to the market through the approved window. This bull run has also increased the activity of venture capital funds.
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