Crypto market fundraising in Q1 2024 surged to $2.4 billion following a turn in market sentiments amid new inflows. A new PitchBook report shows a massive jump in investment numbers quarter-on-quarter in the cryptocurrency market.
According to the report, the sector saw an inflow of $2.3 billion from 518 deals in the first three months of the year. This figure points to a 40.3% rise in investments compared to the previous quarter. This is a huge leap considering increased on-chain activity recorded in Q4 2023.
Deal volume or number of transactions increased by 44.7% last quarter. Market valuations were up this year with the rise in asset prices. PitchBook analysts expect to see a steady rise in investment numbers throughout the year.
“for the pre-seed/seed stage was $21.8 million; the early stage, $72.0 million; and the late stage, $51.1 million, representing YoY increases of 85.5%, 148.3%, and 7.6%, respectively.”
EigenLayer Leads The Pack
Per the report, infrastructure startup saw the highest inflow led by EigenLayer with a $100 million Series B funding while Zama, a crypto company that develops fully Homomorphic Encryption (FHE) saw $73 million inflows.
However, the largest deal of the quarter was Together AI netting $106 million increasing its valuation to $1.1 billion. Deals came with higher valuations for several firms as institutions got invested in the crypto market.
“with median figures registering at $2.7 million for the pre-seed/seed stage, $5.0 million for the early stage, and $5.8 million for the late stage, representing an increase of 24.9%, an increase of 25.0%, and a decrease of 9.7%, respectively, from full-year 2023,” the report added.
Crypto Markets Sees Upticks on Institutional Flows
The major factor spurring the rise in investment was the bull market in Q1 that saw crypto prices tap highs not recorded in months. The approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) triggered a new wave of flows from institutional investors in the crypto market.
The price of Bitcoin soared above $72,000 attracting investors to the market through the approved window. This bull run also increased VC fund activity.
Also Read: XRPL Startup XPMarket Initiates Token Swap After Distribution Error
The post Crypto Market Q1 2024 Funding Surges to $2.4 Billion: Report appeared first on CoinGape.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed