Galaxy Digital: The crypto industry invested $2.4 billion in the third quarter, down 20% from the previous quarter
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Galaxy Digital: The crypto industry invested $2.4 billion in the third quarter, down 20% from the previous quarter
According to CoinDesk, Galaxy Digital's latest report shows that global cryptocurrency startup investments reached $2.4 billion in the third quarter of 2024, a 20% decline from the previous quarter, with the number of investment deals down 17%. The report indicates that 85% of funds went to early-stage projects, while exchanges, lending platforms, and trading platforms attracted the most investment, totaling approximately $460 million. The United States remained the primary source of investment, accounting for 56% of total funding. Projects combining crypto and artificial intelligence received about $270 million in investments, a fivefold increase compared to the previous quarter.
Navigating Web3 tides with focused insightsTechFlow news, October 17 — According to CoinDesk, Galaxy Digital's latest report shows that global cryptocurrency startup investments reached $2.4 billion in the third quarter of 2024, a 20% decline from the previous quarter, with the number of investment deals dropping by 17%. Alex Thorn, Head of Research at Galaxy Digital, said that high interest rates, the launch of spot crypto ETFs, and lingering shadows from the 2022 industry collapse continue to influence institutional investors' decisions.
In the first nine months of this year, the crypto sector has raised a cumulative $8 billion in funding. Full-year fundraising is expected to be roughly on par with 2023 levels, far below the annual highs exceeding $30 billion seen in 2021 and 2022. Nevertheless, Thorn noted that the ETF-driven market rally is intensifying competition among venture capital firms, benefiting entrepreneurs by enabling better valuation terms.
The report revealed that 85% of funds flowed into early-stage projects. Exchanges, lending platforms, and trading platforms attracted the most investment, totaling around $460 million. The United States remains the primary source of investment, accounting for 56% of total funding. Projects combining crypto and artificial intelligence received approximately $270 million in investment, a fivefold increase from the previous quarter.
