In Q1 2024, the crypto market saw a funding increase of over 40% compared to the previous quarter, with a $2.4 billion investment from 518 deals over the past three months.
Q1 2024 saw a surge in cryptocurrency market fundraising to $2.4 billion, as a change in market sentiment accompanied by fresh inflows.
A new PitchBook report reveals a significant quarterly increase in cryptocurrency market investments.
In the first quarter of the year, the sector received an inflow of $2.3 billion from 518 transactions, according to the report.
This number indicates that investments increased by 40.3% compared to the prior quarter.
The observed surge in on-chain activity during the fourth quarter of 2023 signifies the magnitude of this advancement.
The number of transactions or deal volume increased by 44.7% in the previous quarter.
This year, market valuations increased due to the upward trend in asset prices.
Analysts at PitchBook anticipate a consistent increase in investment volume over 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
According to the report, EigenLayer, an infrastructure startup, received the largest Series B funding of $100 million.
Zama, a cryptocurrency company specializing in the development of fully homomorphic encryption (FHE), received $73 million in funding.
However, the quarter’s largest transaction was a $106 million investment in Together AI, which increased its valuation to $1.1 billion.
Deals entailed increased valuations for several firms due to institutional investment in cryptocurrency.
“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 primary driver of the increase in investment was the bull market in the first quarter, which caused cryptocurrency prices to reach all-time highs after months.
The United States Securities and Exchange Commission’s (SEC) approval of spot Bitcoin ETFs sparked a fresh surge in capital inflows from institutional investors participating in the cryptocurrency market.
A surge in Bitcoin’s value beyond $72,000 enticed investors to enter the market via the authorized window.
Additionally, VC fund activity increased during this bull run.
