Despite the bearish market performance, crypto companies raised over $21 billion in 2022, a CoinGecko report revealed. The report also shows that the crypto industry has received more support from institutional investors over the past five years.
2022’s Crypto Funding Surpasses Years Before 2021
According to the analysis, the $21 billion raised in the entirety of 2022 were significantly higher than those from 2018 to 2020.
After seeing a total of $16.22 billion in funding rounds in 2018, crypto companies saw a reduced $4.48 billion and $4.4 billion in total funding rounds in 2019 and 2020, respectively. is 42% lesser than the total funds raised in 2021.
Source: CoinGecko
However, as shown in the chart above, the 2022 figures trail the amount raised in 2021. In the same year, when the crypto market saw a peak market valuation of over $3 trillion, crypto startups raised over $37 billion. It garnered most of these funds in the fourth quarter, right around the market peak.
Notable Funding Rounds in 2022
Crypto companies saw the peak total funding rounds for 2022 in the first quarter – $8.72 billion. In January, for example, the Solana-based self-custodial wallet provider Phantom raised $109 million in a Series B funding round. The fundraising was led by investment firms such as a16z, Solana Ventures, and others.
In February, Polygon Technology, the firm behind the layer-2 blockchain Polygon, closed a $450 million funding round to bolster its ecosystem.
The second quarter, which saw a total of $5.92 billion, represented reduced funds that went into crypto companies. A notable funding round in April featured a $200 million seed fund added to the purse of the American-based crypto exchange, Binance US. This brought the valuation of the company to $4.5 billion.
Crypto firms got a total of $3.61 billion in funds from institutional investors in the third quarter of 2022. During this period, platforms like Unstoppable Domains, Doodles, and crypto exchange Yellow Card, raised funding rounds valued at $65 million, $54 million, and $40 million, respectively.
Despite the catastrophic failure of the crypto exchange FTX, the fourth quarter saw a total of $2.99 billion. One is the blockchain developer platform Matter Labs, which secured $200 million in October.
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