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 Cache 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, caches will be stored in your inventory and can be opened with Keys.

Other news

Zcash's Impressive Market Performance and ETF Launch

chest

Zcash has experienced a remarkable price increase, gaining over 2,300% in the past year, aided by the launch of Grayscale's Zcash ETF.

user avatarLucas Weissmann

Zcash Surpasses $1,000 Mark, Achieving New All-Time High

chest

Zcash's price broke above $1,000 for the first time in nearly a decade, marking a significant milestone in its market performance.

user avatarRajesh Kumar

Trezor Implements New Security Measures After Data Breach

chest

Trezor is enhancing security measures, including anonymous delivery options, in response to a data breach affecting 67,000 customers.

user avatarFilippo Romano

Data Breach Affects 67,000 Trezor Customers

chest

A data breach at shipping provider ShipMonk has exposed personal information of 67,000 Trezor customers in the US.

user avatarEmily Carter

BAI Establishes Global Settlement Layer for AI Agents to Enhance Collaboration

chest

BAI is building a global settlement layer to enhance collaboration and efficiency among AI agents across various workflows.

user avatarTomas Novak

BAI Launches Free Access to Premium AI Models, Surpassing 133 Trillion Daily Tokens

chest

BAI has launched free access to its premium AI models, leading to a significant increase in platform activity and user adoption.

user avatarKaterina Papadopoulou

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.