518 deals totaling $2.3 billion were closed in the first quarter of this year, according to the report. This marks a significant increase of 40.3% compared to the previous quarter. The cryptocurrency market experienced a surge in investments, with fundraising reaching $2.4 billion in Q1 2024.
The boost in investments can be attributed to a shift in market sentiment and an influx of fresh capital. The cryptocurrency sector saw a substantial rise in investment numbers quarter-on-quarter, thanks to the bullish market conditions. During this period, cryptocurrency values reached levels not seen in months, attracting institutional investors.
With the approval of spot Bitcoin ETFs by the SEC, institutional investors eagerly entered the cryptocurrency market. The price of Bitcoin soared to a new all-time high of around $73,000, attracting a swarm of investors. Additionally, venture capital funds were actively involved in this bull run.
The report reveals that the industry witnessed a significant growth with the closure of 518 deals totaling $2.3 billion in the first quarter of this year. Investments increased by 40.3% compared to the previous quarter, indicating a remarkable progress. This substantial jump can be attributed to the increased on-chain activities observed in Q4 2023.
Notably, there was a 44.7% increase in the volume of transactions in the previous quarter. The surge in asset values led to high market valuations this year. The experts at PitchBook anticipate a continuous rise in investment activity throughout the year.
According to the report, Zama, a crypto firm specializing in fully homomorphic encryption (FHE), raised $73 million in fundraising. EigenLayer also secured $100 million in Series B funding. However, the biggest deal of the quarter was sealed by Together AI, which raised $106 million and achieved a valuation of $1.1 billion. As institutional participation in the cryptocurrency sector increased, numerous deals contributed to the growth of various companies.
In today’s crypto news, the price of Solana witnessed a surge, reaching a five-week high.
