TechFlow news, according to the latest quarterly report from financial data and research provider PitchBook, although the number of venture capital deals in the crypto sector declined during the first quarter of 2024, investor enthusiasm for the industry remains strong. The report shows that total crypto fundraising in Q1 increased 2.5% year-on-year to $2.7 billion across 503 deals, though the number of transactions fell 12.5% compared to the same period last year.
Robert Le, Senior Analyst for Emerging Technologies at PitchBook, said investors are concentrating their capital into a narrower set of opportunities, reflecting a "flight to quality" trend.
The largest deals in the second quarter included $225 million in Series A funding for Layer-1 platform Monad, $100 million in Series B funding for Layer-1 platform Berachain, and a $70 million early-stage round for Bitcoin restaking platform Babylon.
Le expects total fundraising for 2024 to grow by 20% or more compared to last year, potentially reaching between $12 billion and $14 billion.
He also noted that blockchain networks may undergo a period of consolidation, with only 3 to 5 blockchains expected to host the majority of developer and user activity in the future.
In addition, Le believes decentralized physical infrastructure (DePIN) could emerge as one of the most prominent sectors in this cycle due to its appeal to non-crypto-native users.
