State of Crypto VCs - Q1

Market Update - April 16th, 2024

Author

Michael Blake
April 16, 2024

Market Update - April 16th, 2024

Top News Headlines

  • BTC, ETH Rise as Hong Kong Bitcoin ETF Applicants Say They've Been Approved - Read More

  • Meme-Coin, AI Tokens Lead Gains After Bitcoin Drop Causes $2B in Weekend Liquidations - Read More

  • IRS investigation chief expects uptick in crypto tax evasion this year - Read More

  • Galaxy Digital highlights the influence of crypto on the US election - Read More

Top Crypto Prices by Market Cap.

1. Bitcoin $62,891.27 7D -11.1%
2. Ethereum $3,069.01 7D -15.4%
3. BNB $543.90 7D -6.4%
4. Solana $134.58 7D -23.6%
5. XRP $0.488 7D -21.7%

6. Dogecoin $0.154 7D -21.3%
7. Toncoin $6.24 7D -9.4%
8. Cardano $0.46 7D -24.6%
9. Shiba Inu $0.000022 7D -21.0%
10. Avalanche $34.71 7D -28.4%

Source: Coingecko Price Feed, April 16th, 2024, 8:30am EST. Data excludes Lido Staked Ether, and stablecoins USDC and USDT.

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Spotlight: State of Crypto VCs - Q1

It’s been a crazy 72 hours in the crypto markets, as close to $400B in value was wiped out after reports of Iran attacking Israel. Markets have since showed signs of recovery, but the macro environment remains uncertain.

This week we’re taking a step back to focus on the optimistic state of Crypto Venture Capital, and the key trends through Q1.

Shoutout to @CryptoKoryo

Longer-Term VC Trends

Both total investments and number of VC investments have increased compared to last quarter. Compared to last quarter, there was a 38% increase in amount invested and 49% increase in the number of projects invested.

We are still 7x away from the investments being made in Q4 2021, but many are starting to think this is the beginning of a new wave. The current start of the uptrend is similar to the situation in Q4 2020, right before crypto markets started going parabolic.

Top Crypto VC’s

Compared to previous quarters where many banks and non-crypto VCs led investment rounds, we are seeing Crypto VCs dominating investment rounds this quarter.

Total VC investment for the quarter hit almost ~$2B.

Andreesen Horowitz’s firm @a16zcrypto led the pack, followed by @OKX_Ventures, @multicoincap, @paradigm, and @polychain.

Top Blockchains By Investment

Ethereum remained the most popular blockchain for VC investment with ~50 new projects receiving funding.

Notably, Solana skyrocketed from 10th place in Q4 2023, to 2nd place in Q1 2024 with ~40 new projects funded.

Bitcoin has also seen a strong resurgence in VC interest with the rise of Bitcoin Layer 2s, Ordinal NFTs, and the upcoming Rune token standard (keep an eye out for a deeper dive into the Bitcoin ecosystem soon! 👀).

That’s it for this edition of Digital Asset Insights! Thanks for reading!

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