Galaxy Digital: In Q2 this year, crypto and blockchain companies secured $3.19 billion in venture capital

ChainCatcher news, according to The Block, despite the market downturn, Galaxy Digital reports that the crypto venture capital market continued to recover in the second quarter of 2024. Web3, Layer 1, and Bitcoin Layer 2 are the most significant investment categories this quarter. In the second quarter, crypto and blockchain companies secured $3.19 billion in venture capital, slightly up from $3.16 billion in the first quarter. The median deal size rose from $3 million to $3.2 million, while the estimated valuation jumped from $19 million to $37 million. There were a total of 739 crypto venture capital deals in the second quarter, an 8% increase from the first quarter. The Web3 sector attracted $495.5 million in investments, including a $150 million funding round for the Web3 social media platform Farcaster. Layer 1 raised $371 million, while Bitcoin Layer 2 projects received $94.6 million in investments, a year-on-year increase of 174%.

While the U.S. still dominates in terms of deal count and investment amount, regulatory headwinds may force more companies to move overseas. Analysts point out that the multi-year correlation between Bitcoin prices and venture capital has been broken this year; despite Bitcoin rising 43% year-to-date, investment capital remains well below the levels seen during the peak Bitcoin prices of 2021-2022. Analysts suggest that a recovery in cryptocurrencies in the second half of the year could trigger more venture capital activity.