RootData: Q2 2024 Web3 Industry Investment Research Report
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RootData: Q2 2024 Web3 Industry Investment Research Report
Web3 industry funding totaled $2.75 billion in Q2 2024, a 38.9% year-on-year increase, with mid-to-late stage financings rising 20.7% quarter-on-quarter.
Navigating Web3 tides with focused insightsAuthor: RootData Research
Table of Contents
1. Web3 Funding Overview in Q2 2024:
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Total funding reached $2.75 billion, a year-on-year increase of 38.9%
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Social sector funding surged 650% quarter-on-quarter
2. Project Funding Distribution in Q2 2024:
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Mid-to-late stage financing deals increased by 20.7% quarter-on-quarter
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Top 5 funded projects saw total funding grow 81.25% quarter-on-quarter
3. Institutional Activity Rankings in Q2 2024:
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Top ten investing institutions made 2% more investments quarter-on-quarter
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Animoca Brands led with 36 investments, becoming the most active investor in Q2
4. Web3 Fundraising by Investment Funds in Q2 2024:
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Web3 funds raised a total of $1.38 billion in H1 2024
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Investors remain cautious and compliance-focused; ETFs continue driving Bitcoin's independent rally
5. Web3 Project Search Trends Recap in Q2 2024:
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Airdrop season arrived as expected; high valuations and low circulating supply may suppress token price performance
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Competition for Binance listings intensifies; over 30 major projects expected to conduct TGE in Q3
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Core brands in the Web3 space are concentrated in exchanges, base-layer blockchains, Web3 media, and analytics tools
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X Trending List proves effective for discovering alpha projects and correlates strongly with investor sentiment
Executive Summary
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Web3 industry funding maintained strong momentum in Q2 2024, reaching $2.75 billion in total, a year-on-year increase of 38.9%. The social sector emerged prominently, with funding surging 650% quarter-on-quarter. Spot Bitcoin ETFs recorded net inflows of $2.394 billion in Q2, down 80% from Q1, while total assets under management declined 12.4% quarter-on-quarter.
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The number of mid-to-late stage funding rounds in Q2 2024 increased by 20.7% quarter-on-quarter, reflecting a trend where investors increasingly favor strategic, larger-scale bets amid market stabilization. Animoca Brands led institutional activity with 36 investments in Q2. The top ten institutions increased their GameFi investments by 71% quarter-on-quarter.
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Paradigm announced an $850 million fundraise, marking the largest fundraise event in Q2 and throughout H1 2024. During the bull market phase that began at the end of 2023, total fundraising by Web3 funds was more than 10 times lower than during the previous bull cycle. Bitcoin prices are no longer driven primarily by inflows into Web3 funds.
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High FDV, low-circulating projects reach peak search volume just before TGE, followed by a sharp decline. Competition for Binance listings heats up: Launchpool projects average $217 million in valuation, with institutional allocation rates below 2%. Over 30 major projects are expected to conduct TGE in Q3.
1. Q2 2024 Web3 Funding Reaches $2.75 Billion, Up 38.9% Year-on-Year; Social Sector Funding Surges 650% Quarter-on-Quarter
Bitcoin price movement in Q2 2024 vs. Web3 industry funding amount
Source: RootData
Bitcoin experienced significant volatility in Q2 2024. On April 8, its price peaked at $71,630, then dropped to around $58,300 on May 1—the quarterly low. As of June 30, Bitcoin was down approximately 13% from the start of the quarter. Spot Bitcoin ETFs recorded net inflows of $2.394 billion in Q2, down 80% from Q1. As of June 30, total assets under management stood at $51.127 billion, about 12.4% lower than in Q1. Despite this complex market environment, Web3 primary market funding remained robust. According to RootData, there were 418 funding events in the Web3 sector in Q2 2024, totaling $2.75 billion—up 38.9% year-on-year.
Top 3 funded sectors in Q2 2024
Source: RootData
According to RootData, the top three funded sectors in Q2 were infrastructure, DeFi, and social. Infrastructure raised $1.016 billion, a 145% increase quarter-on-quarter. Notably, the social sector surged, raising $227 million—a 650% quarter-on-quarter increase and 261% year-on-year growth.
The strong performance in infrastructure is linked to several Layer 1 and Layer 2 projects securing large funding rounds—for example, Monad raised $225 million and Berachain raised $100 million. In DeFi, 56 projects received million-dollar-level funding, mostly at seed stage, indicating a surge of new project launches. The explosive growth in the social sector is largely attributed to projects like Farcaster successfully balancing technological innovation with user experience while cultivating a high-quality, low-noise community culture. This innovative model could resolve sustainability issues faced by early SocialFi projects and offers new possibilities for attracting broader user adoption, thereby accelerating sector-wide development and investment interest.
2. Mid-to-Late Stage Financing Deals Increased by 20.7% Quarter-on-Quarter; Top 5 Projects Raised 81.25% More Than Previous Quarter
Distribution of project funding amounts in Q2 2024
Source: RootData
In terms of funding size, early-stage investments (under $5M) totaled 160 projects in Q2, slightly down quarter-on-quarter. Mid-stage investments ($5M–$10M) reached 79 projects, a 61.2% year-on-year increase. The total number of mid-to-late stage funding events reached 146, up 20.7% quarter-on-quarter. This trend may reflect investor confidence returning amid market stabilization, with institutions possibly positioning for anticipated market rallies and favoring shorter-term exit opportunities.
The top five funded projects in Q2 2024 raised a combined $725 million, an 81.25% increase compared to Q1. Monad led the list with a $225 million round led by Paradigm. Notably, Farcaster secured $150 million at a $1 billion valuation—remarkable given the sector’s previously subdued funding landscape, with only about $70 million disclosed across projects in Q1. Additionally, Berachain achieved a $1.5 billion valuation in its Series B round in April 2024, representing a 257% valuation increase within one year.
Top 5 funded projects in Q2 2024
Source: RootData
3. Top Ten Investing Institutions Made 2% More Investments Quarter-on-Quarter; Animoca Brands Leads with 36 Deals in Q2
Institutional activity ranking in Q2 2024
Source: RootData
According to RootData, the top ten investment firms participated in 202 deals in Q2 2024, a 2% increase quarter-on-quarter. OKX Ventures led in Q1 with 30 investments and remained highly active in Q2 with 25. Infrastructure remained the most popular sector, accounting for 81 of the top ten institutions’ investments—about 40% of their total Q2 activity.
The top ten institutions invested 53 times in GameFi during Q2, a 71% increase from Q1. This explosive growth may stem from projects evolving beyond simple "play-to-earn" models toward more sophisticated and engaging gameplay experiences. Such shifts not only enhance game quality and user experience but also help maintain sustainable economic models. In contrast, DAO and NFT sectors lacking innovation continued their sluggish performance from Q1.
View real-time on-chain portfolio data: OKX Ventures; HashKeyCapital; The Spartan Group
4. Web3 Funds Raised $1.38 Billion in H1 2024; Investors Favor Caution and Compliance; Bitcoin Maintains Independent Rally
Number and amount of Web3 venture fund raises (2015–2024 Q2)
Source: RootData
Public data since 2015 shows 177 Web3 fundraise events with total capital exceeding $39.6 billion. Large-scale external capital fueled the 2021–2022 bull market, leaving behind numerous high-valuation projects such as StarkNet and zkSync.
Although capital inflow has slowed in recent years, it remains significantly higher than in 2020 and shows an upward trend. In H1 2024, Web3 funds raised $1.38 billion, highlighted by Paradigm’s $850 million fundraise on June 13—the largest fundraise in Q2 and all of H1 2024.
During the bull market phase starting at the end of 2023, total fundraising by Web3 funds was more than 10 times lower than in the prior cycle. Bitcoin prices are no longer primarily driven by inflows into Web3 funds. This may reflect traditional high-net-worth investors adopting a more cautious stance, preferring compliant channels like ETFs to invest in crypto assets while avoiding being the “greater fool” who buys at the top of the last cycle—thus contributing to Bitcoin’s independent price rise.
5. Q2 Project Search Trends Recap
5.1 Airdrop Season Arrives as Expected; High Valuations and Low Circulating Supply May Suppress Token Performance
RootData Q2 Most Searched Tokens (Top 12)
Source: RootData
Bitcoin traded in a wide range of $57,000–$72,000 in Q2, with many marquee projects choosing this window for their TGE, including Wormhole, io.net, zkSync, LayerZero, and Blast. Among the top 12 TGE projects with highest search volumes in Q2, search interest peaked just before TGE and then plummeted. Attention levels were also closely tied to Bitcoin’s price, reflecting overall Web3 market sentiment.
Many high-profile projects carry the label of “high valuation, low circulation.” RootData’s prior research indicates that Binance Launchpool projects averaged $217 million in valuation over the past three years, while OKX Jumpstart projects averaged $373 million. Furthermore, among projects with FDV under $1 billion and not yet listed on Binance, fewer than 30% avoided first-to-second market valuation inversion.
Between 2021 and 2022, abundant primary market capital flowed in aggressively, driven by optimistic sentiment, leading many Web3 funds to adopt high-valuation strategies without sufficient scrutiny. However, these projects often failed to demonstrate sustainable business models. Additionally, tightening liquidity due to rising U.S. interest rates may have further dampened investor appetite for newly launched tokens.
5.2 Competition for Binance Listings Intensifies; Over 30 Major Projects Expected to Conduct TGE in Q3
High-FDV, well-funded projects likely to TGE in Q3
Source: RootData
RootData’s Q3 TGE forecast list includes 30 high-profile, well-funded, high-FDV projects such as Monad, Fuel, Scroll, and Succinct—all strong candidates for Binance listing.
Analysis of 288 investors’ portfolios revealed that Binance Launchpool projects make up less than 2% of their holdings on average. Among nearly 30 Launchpool projects, 21 were backed by Binance Labs, representing over 11% of its portfolio.
Due to Binance’s deep order books, low slippage, and competitive contract trading fees, the intense competition to list on Binance has profound market implications. Projects launching on Binance can leverage its market dominance and platform resources to establish a solid foundation for long-term growth.
5.3 Core Web3 Brands Concentrated in Exchanges, Base-Layer Blockchains, Web3 Media, and Analytics Tools
X Influence Index
Source: RootData
RootData’s X Influence Index provides users with a clear view of the most influential Web3 projects. The core 12 projects span four key areas:
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Exchanges: Coinbase, Binance, Uniswap
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Base-layer blockchains: Bitcoin, Ethereum, Solana, Polygon
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Web3 media: CoinDesk, The Block, Cointelegraph
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Analytics tools: CoinMarketCap, Messari
5.4 X Trending List Facilitates Alpha Discovery and Correlates Strongly with Investor Sentiment
As a dynamic market observation tool tightly integrated with X platform data, the X Trending List quickly highlights promising alpha projects and updates frequently. It has become a vital window into investor sentiment, with overall热度 values declining through Q2:
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April: Optimistic Web3 market sentiment and high project activity
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May: Market volatility and cautious investor posture
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June: BTC rebound failed to surpass prior highs, liquidity tightened, and social热度 hit rock bottom
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About RootData
RootData is a Web3 asset discovery and tracking data platform that pioneers the integration of on-chain and off-chain data. With higher data structuring and readability, RootData aims to become a productivity tool for Web3 enthusiasts and investors.
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