According to PANews, after experiencing a decline for three consecutive quarters, cryptocurrency and blockchain startups have seen a significant increase in venture capital. In the first quarter of 2024, investors injected $2.49 billion in 603 transactions, an increase of 29% in funding and 68% in transaction volume compared to the previous quarter. The report suggests that several factors influenced the investment dynamics this quarter, including the launch of Bitcoin ETFs, re-pledging, modularization, and innovation in Bitcoin's second-layer solutions, as well as macroeconomic factors such as interest rates.
Furthermore, 80% of the investment funds this quarter were allocated to early-stage startups. In contrast, later-stage companies faced more stringent conditions as many large integrated venture capital firms either left the industry or significantly reduced their investments. Investment activity within the industry was primarily in the infrastructure sector, accounting for 24% of the total funds raised this quarter, including EigenLayer's $100 million financing.
Geographically, the United States continues to dominate the cryptocurrency venture capital field, with U.S. startups participating in 37.3% of all transactions and receiving 42.9% of the investment capital. Singapore followed closely, accounting for 10.8% of the total transactions, the United Kingdom accounted for 10.2%, Switzerland 3.5%, and Hong Kong 3.2%.