Investments in the first quarter were influenced by innovation in areas like restaking, modularity, Bitcoin layer-2 solutions, and macroeconomic factors.
After three consecutive quarters of decline, crypto and blockchain startups have witnessed a significant uptick in venture capital investment.
According to data compiled by Galaxy Research, investors injected $2.49 billion across 603 deals in the first quarter of 2024, representing a 29% increase in funding and a 68% rise in deal count from the previous quarter. A sustained recovery must be confirmed by subsequent quarters of growth, the report states, adding:
Several factors influenced this quarter’s investment dynamics, including the introduction of Bitcoin exchange-traded funds (ETFs), innovations in areas such as restaking, modularity, and Bitcoin layer-2 solutions, as well as macroeconomic factors such as interest rates.
