Crypto VC Deals Declined by 46% in 2024

user avatar

by Giorgi Kostiuk

2 years ago

The number of cryptocurrency venture capital deals significantly declined in the fourth quarter of 2024, indicating that investors are becoming more selective.

Trends in Crypto Venture Capital Deals

According to PitchBook's Crypto VC Trends report, the total crypto deal count in the first quarter of 2024 was 653. However, by Q4, the number of deals fell to 351, marking a 46% drop. Despite the decline in deal count, total investment volume rebounded. PitchBook data showed that crypto VC funding totaled $2.7 billion in Q1 before declining in Q2 and Q3. In Q4, investment volume rebounded to $2.6 billion, reflecting a 13% quarter-over-quarter increase. PitchBook analysts noted that while the rebound in funding suggests investors remain willing to back established teams and differentiated technologies, the continued pullback in deal count highlights growing investor selectivity—a dynamic that first became evident in Q3.

The rebound in funding suggests investors remain willing to back established teams and differentiated technologies, but the pullback in deal count highlights growing investor selectivity.None

Web3's Dominance in Investments

The Web3 sector, which includes decentralized communities, metaverse and gaming, NFT platforms, and AI-integrated crypto projects, was the top recipient of venture capital in 2024. In Q4 2024, the sector saw more than $800 million in VC investments, with the Praxis project receiving a significant part. On October 15, the platform reported a $525 million funding pledge.

Investment Activity in 2024 by Segments

In 2024, the Web3 sector received $2.1 billion in VC investments in 142 deals, the highest among all sectors. Blockchain networks, including bridges and interoperability solutions, were second with $1.8 billion in 106 deals. Infrastructure and developer tools including data storage, development platforms, institutional services, and node management, ranked third with $1.7 billion in 125 deals. The access sector, including asset management, exchanges, wallets, research, and data tools, received $1 billion in 70 deals, while decentralized finance received $714 million in 80 deals.

Despite the overall decline in the number of deals, investment volumes indicate a sustained investor interest in the crypto industry, albeit with increased selectivity in project choices.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Uniswap v4 Hooks Achieve Milestone with 500 Registered Deployments

Uniswap v4 has reached a significant milestone with over 500 registered custom hook deployments, showcasing the active engagement of developers in the ecosystem.

user avatarArif Mukhtar

SK Hynix Stock Eyes New Highs Amid Bullish Predictions

SK Hynix stock opened at 189 on Thursday, aiming to breach the 200 level with bullish predictions from Wolfe Research, targeting 250.

user avatarMaria Gutierrez

Optimism Superchain Surpasses $14 Billion in Total Value Locked

Optimism's Superchain has recently surpassed a remarkable $14 billion in total value locked, showcasing the significant growth of its ecosystem.

user avatarDavid Robinson

Canary Capital Launches TRON ETF, Expanding Institutional Access

Canary Capital launches the Canary Staked TRX ETF, enhancing institutional access to the TRON network.

user avatarJacob Williams

Coinbase's Base Achieves 75 Million Daily Transactions

Coinbase's Ethereum Layer 2 ecosystem, Base, has reached a significant milestone with 75 million daily transactions, indicating a diverse range of activities on the network.

user avatarAndrew Smith

TRON Achieves Major Milestone with 30 Trillion Transactions

TRON DAO announces that its blockchain has surpassed 30 trillion in total transaction volume, marking a significant milestone in its growth.

user avatarZainab Kamara

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.