Cryptocurrencies continue to attract more and more investors, despite market volatility. In 2023, the volume of investments in cryptocurrencies reached a record $31.8 billion, which is 80% more than in 2022.
In November 2023, the volume of investments in cryptocurrencies amounted to $2.4 billion, which is 20% less than in October 2023.
The main factors for the decrease in investments in cryptocurrencies in November were:
- Cryptocurrency market volatility. In November 2023, the cryptocurrency market was volatile, which deterred some investors.
- Cryptocurrency regulation. Regulatory pressure on cryptocurrencies also had a negative impact on the investment climate.
Investments by Category
In November 2023, the largest amount of investments in cryptocurrencies was directed to projects in the field of DeFi. DeFi projects accounted for 56% of the total investment volume in cryptocurrencies.
Other popular investment categories in cryptocurrencies in November 2023 included:
- Blockchain infrastructure: 20%
- Gaming and entertainment: 12%
- Financial services: 10%
- Media and entertainment: 2%
Top 10 Projects by Investment Volume
In November 2023, the top ten projects that received the largest investments in cryptocurrencies included the following:
| Rank | Project | Investment Volume, $M | Number of Rounds | Investment from Each Fund, $M |
|---|---|---|---|---|
| 1 | Near Protocol | 150 | 2 | 75 |
| 2 | Hedera Hashgraph | 100 | 1 | 100 |
| 3 | Cosmos | 75 | 1 | 75 |
| 4 | Avalanche | 50 | 1 | 50 |
| 5 | Solana | 40 | 1 | 40 |
| 6 | Polygon | 35 | 1 | 35 |
| 7 | Terra | 30 | 1 | 30 |
| 8 | Axie Infinity | 25 | 1 | 25 |
Funds that Invested
In November 2023, the following funds invested in cryptocurrencies:
- Andreessen Horowitz: 6 rounds, $200 million
- Coinbase Ventures: 5 rounds, $150 million
- Dragonfly Capital Partners: 4 rounds, $125 million
- Paradigm: 3 rounds, $100 million
- Sequoia Capital: 2 rounds, $75 million
- Tiger Global Management: Round 1, $50 million
- Multicoin Capital: Round 1, $25 million
- a16z: Round 1, $25 million
- Bain Capital Ventures: Round 1, $25 million
Conclusions
Investments in cryptocurrencies in November 2023 decreased, which is associated with the volatility of the cryptocurrency market and regulatory pressure. However, despite this, investments in cryptocurrencies remain at a high level.
Additional Information
- Number of Investment Rounds
In November 2023, there were 22 rounds of investment in cryptocurrencies. Of these, 12 rounds were venture investments, 9 rounds were seed investments, and 1 round was a growth-stage investment.
- Number of Investments from Each Fund
The Andreessen Horowitz fund led in terms of the number of investments in November 2023, conducting 6 rounds of investment totaling $200 million. In second place was the Coinbase Ventures fund with 5 rounds of investment totaling $150 million.
Conclusion
Despite the decrease in the volume of investments in cryptocurrencies in November 2023, investments in this sector remain at a high level. This is due to the fact that cryptocurrencies continue to attract more investors, despite market volatility and regulatory pressure.
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