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

Other Crypto Funds Experience Significant Withdrawals

Other cryptocurrency ETF categories, including Solana and XRP, recorded significant withdrawals, indicating a broader trend of selling pressure.

user avatarSatoshi Nakamura

MEGA Plans AI Marketplace Launch for December

MEGA is set to launch an AI inference marketplace in December, allowing customers to access services from various AI model providers.

user avatarNguyen Van Long

MEGA Reduces Workforce to Shift Focus to AI Products

MEGA has laid off 20 employees as part of a restructuring to expand into artificial intelligence, moving beyond its blockchain infrastructure.

user avatarKofi Adjeman

Institutional Withdrawals from Crypto ETFs Reach Over $1 Billion

Institutional demand for crypto ETFs has weakened significantly, with US spot Bitcoin ETFs experiencing over $1 billion in withdrawals for the second consecutive week.

user avatarJesper Sørensen

Ethereum Staking Hits Record Levels Despite Price Drop

Ethereum's staking rate has surged to an all-time high of 36.3% of total supply, even as the price of ETH has fallen to around $2,000.

user avatarRajesh Kumar

Jane Street Boosts Bitcoin ETF Holdings Amid Market Changes

Jane Street has significantly increased its stake in major Bitcoin ETFs, particularly in Fidelity's Wise Origin Bitcoin Fund, reflecting strong client demand and trading activity in the Bitcoin market.

user avatarLucas Weissmann

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.