Report Shows Crypto Startups Raised $30.3 Billion in H1 2022, Surpassing Total Raised in 2021 Cryptocurrency
While cryptocurrency markets performed poorly in the first two quarters of 2022, a recently released fundraising report authored by Messari researchers notes that $30.3 billion was raised by investors. crypto projects and startups in the first half of 2022. The $30.3 billion raised from 1,199 fundraising rounds exceeds all startup and blockchain project funding raised last year.
H1 Crypto Ecosystem Funding Report Shows Capital Keeps Flowing Despite Crypto Winter
A significant amount of money has been pumped into specific blockchain projects and startups within the crypto industry, according to the “H1 2022 Fundraising Report” published by Messari and Dove Metrics, a subsidiary of Messari Holding Inc. According to the reportcentralized finance (cefi) overtook decentralized finance (defi), as cefi captured more than $10.2 billion in the first half.
Defi managed to raise $1.8 billion, while Web3 and non-fungible token (NFT) projects and related companies raised $8.6 billion in the first six months of the year. $9.7 billion was injected into the blockchain and crypto infrastructure sector and while Web3 and NFT saw the third capital raised, the Web3-NFT sector saw the most fundraising with 530 rounds during the first two trimesters.
Defi’s biggest month was June, as a number of defi projects and ventures raised $624 million. “Despite the maturity of DeFi, seed towers continue to dominate,” Messari researchers explain in the report. February was the month with the most funds raised for infrastructure, January for cefi, and April for the Web3-NFT sector.
Ethereum-based defi projects and startups have received the most spins and highest dollar amounts, compared to alternative smart contract blockchains like Solana, Avalanche, and Polkadot when it comes to fundraising. Ethereum-based defi projects saw 54 transactions in Q1 and 61 transactions in Q2. In Q1, Ethereum-based defi projects raised $387 million while alternative blockchain projects raised $309 million in the first quarter of 2022.
In the second quarter, the ETH-based challenge raised $890 million while the on-chain-based alternative projects raised around $193 million. Messari researchers note that in the Web3-NFT sector, early-stage funding reigns supreme and games have eclipsed most NFT funding. Again, Ethereum also dominated the Web3-NFT industry, compared to alternative networks of smart contract platforms.
Cefi, Infrastructure, Web3 Mature sectors
As for centralized funding, cefi “continues to mature,” says Messari’s report, which points out that funding rounds over $10 million “represent 50% of activity.” Messari’s latest H1 fundraising report follows the “4th Annual Report 2022 on Global Crypto Hedge Funds”, compiled by international professional services firm Pricewaterhousecoopers (PWC).
The ideas of The recent PWC crypto study show that hedge funds pouring capital into cryptocurrency and blockchain projects have increased since last year. PWC researchers estimated that 21% of hedge funds participated in crypto-related funding rounds, compared to this year’s participation rate of 38%.
Messari’s fundraising report details that many sectors are “mature” as Series A or later funding rounds accounted for more than 40% of cycles dedicated to H1’s crypto infrastructure. Series A rounds of Web3 or later were equivalent to approximately 30%+ of funding rounds in the first half of 2022. Investors mentioned in Messari’s fundraising report include companies such as FTX, Mechanism Capital, Pantera Capital, Sequoia Capital, Gumi Cryptos, Dragonfly Capital, Slow Ventures, Seven Seven Six, and about a dozen and a half others.
What do you think of the H1 fundraising report from Dove Metrics and Messari? Let us know your thoughts on this in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Graphics via a report by Dove Metrics and Messari Holding Inc.
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