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.
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.
