Crypto VC investments plummeted in April after previous upticks with the wider market sentiment. Statistics from RootData show a decline in the number of crypto VC projects in the first month of the second quarter despite previous bullish projections.
According to the source, April saw a 13.4% decking in VC numbers with funds moving to 124 projects. In March 2024, funds moved to 186 crypto projects as bulls sought to close in on the bitcoin halving anticipation. Despite the slight drop recorded last month, figures remain 23% up year-on-year from 2023.
Monad Labs and Berachain See Highest Flows
The $1.02 billion in VC funding was moved across different categories of web3 projects. Monad Labs saw an inflow of $225 million in a funding round led by Paradigm, Greenoaks, and Electric Capital.
Berachain ranked second with $100 million flows in a Series B funding led by top VC firms including Brevan Howard Digital, Polychain Capital, Tribe Capital, Hack VC, etc. The move boosted the company’s valuation to $1.5 billion.
Auradine came in third with $80 million in a series B funding round as top crypto VC firms poured funds into the miner manufacturer. Participants included Marathon Digital, and StepStone Group among others. The company raised funds to increase its capacity in producing mining machines as the halving momentum gripped the market.
Miners scrambled for old computer hardware ahead of the Bitcoin halving giving them more advantage in the market. Other firms that saw inflow from crypto VC companies include Movement, Mezo, Phoenix, etc.
Reason for the Drop in Crypto VC Funds
The main reason for the drop in crypto VC funds last month is the market’s bearish outlook as asset prices plunged. After the Bitcoin halving, institutional sentiment declined due to macroeconomic factors leading to massive sell-offs in Bitcoin, altcoins, and memecoins.
Q1 2024 saw increased figures as the price of Bitcoin hit a new all-time high following the approval of spot Bitcoin ETFs.
Also Read: Pantera Capital Backs TON Blockchain, TON Price Soars 10%
The post Crypto VC Investment Plunged 13% in April as Assets Record Outflows 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