According to CoinDesk, venture capitalists invested over 52% more into crypto projects in March compared to the previous month. Crypto projects in the United States received more than $1.16 billion last month, marking the second-highest amount in the past 12 months. The majority of the capital was allocated to projects related to crypto infrastructure and decentralized finance (DeFi), particularly those built on the Ethereum blockchain.
Data from RootData shows that other popular blockchains included Polygon and BNB Chain. The increase in funding coincided with bitcoin reaching a new all-time high of $73,798 on March 14, which experts attribute to better-than-expected inflows into the newly launched spot bitcoin exchange-traded funds (ETFs). The ten ETFs, featuring issuers like BlackRock and Fidelity, renewed interest in the industry as traditional finance leaders expressed their interest in digital assets.
More than half of the investments in March were between $1 million and $5 million, used as seed capital, while allocations of over $20 million made up roughly 10% of all investments. Approximately a third of the capital was allocated to projects located in the United States, according to RootData.
