Crypto VC Investments Continue to Take a Hit, Drop Another 10% MoM

Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Ruholamin Haqshanas
Author Categories
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: Adobe / LALAKA

There has been a significant decline in publicly disclosed investment projects by crypto venture capitalists (VCs) during the month of October.

Data from RootData indicate a 10% month-on-month decrease, with only 75 investment projects recorded compared to 83 projects in September 2023, as reported by Chinese reporter Wu Blockchain

This also marks a substantial year-on-year decrease of 45% when compared to the 135 projects reported in October 2022.

The report mentioned that these statistics may experience future revisions as not all financing is immediately announced.

Meanwhile, in terms of investment allocation, infrastructure projects accounted for approximately 24% of the financing, followed by decentralized finance (DeFi) at 21%, centralized finance (CeFi) at 9%, and non-fungible tokens/GameFi at 13%.

In terms of total financing amount, October witnessed a decline of 20% compared to the previous month, with a total of $430 million invested.

This is in stark contrast to the $530 million recorded in September 2023.

Moreover, the year-on-year decrease is even more pronounced, plummeting by a staggering 63% from the $1.15 billion invested in October 2022.

Notable Funding Rounds in October

Despite the overall decline, there were still notable funding rounds exceeding $12 million.

Blockaid, a web3 security development company, secured $33 million in financing through a seed round involving prominent investors such as Sequoia Capital, Greylock Partners, and Cyberstarts.

As reported, Blockaid has teamed up with MetaMask to introduce a new feature aimed at bolstering user security.

Another standout funding round involved Blackbird, a provider of loyalty and connectivity tools for restaurants, which completed a $24 million Series A financing round led by a16z.

SynFutures, a decentralized derivatives exchange, raised $22 million in its Series B round led by Pantera Capital, and Membrane Labs, a cryptocurrency trading and lending platform, secured $20 million in its Series A financing round.

Gaming company NEON Machine also made waves with the completion of a $20 million financing round led by Polychain Capital, while Binance announced the launch of its 39th new coin mining project, Memecoin (MEME).

Additionally, RWA lending platform Untangled Finance completed a $13.5 million financing round and unveiled its launch on the Celo network.

The decline in crypto VC investments reflects a cautious sentiment within the industry, potentially driven by regulatory uncertainties and market volatility.

However, as of late, investor sentiment has improved, as evident from the increase in digital asset fund inflows.

Digital asset investment funds saw a record $326 million in net outflows last week, marking the largest single week of inflows since July 2022.

The surge in investor interest can be attributed to growing optimism surrounding the potential approval of a spot-based Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC).

“Month-to-date inflows are now close to half a billion dollars,” CoinShares said in a recent report, noting that this indicates an increase in investor confidence.

More Articles

Price Analysis
Will Trump’s Tariffs Boost Bitcoin: Down 5% Again
Arslan Butt
Arslan Butt
2025-02-08 14:39:24
Price Analysis
Solana Struggles: Price Down Almost 15% in a Week – Is It Time to Buy?
Arslan Butt
Arslan Butt
2025-02-08 13:22:54
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors