During the first quarter of 2024, there was a notable resurgence in venture capital investment within the crypto industry. This uptick indicates a renewal of investor confidence following the crypto winter that commenced in 2022.
According to the 2024 Crypto Spring Report by Chainalysis, the first quarter of 2024 witnessed the initial rise in quarter-over-quarter crypto investment since early 2023 with total funding nearing $2.5 billion. This rebound comes after a significant downturn in 2023 during which quarterly funding volumes dropped below $2 billion.
The most active firms include:
- OKX Ventures with 12 deals
- Animoca Brands (11)
- The Spartan Group (10)
- Big Brain Holdings (9)
- Cogitent Ventures (8)
- Mechanism Capital (7)
- Polychain Capital (7)
- Foresight Ventures (7)
- GBV Capital (7), and
- Morningstar Ventures (6)
Here are the top raises for 2024 thus far, with Monad, an upcoming L1 blockchain coming in at number one for the year:
Top Sectors for Investment
DePIN
There is a major interest in decentralized physical infrastructure networks or DePIN. These projects, which include initiatives like Helium for decentralized wireless networks and Filecoin for data storage, are drawing in significant funding.
DePIN employs cryptocurrency rewards as incentives for individuals to engage in physical infrastructure networks allowing them to develop organically from the grassroots level rather than being dictated from a centralized authority.
BitKE recently took a look at some of the DePIN projects in Africa as of Q1 2024.
USE CASES | From Ride-Sharing to Sharing WiFi Hotspots – A look At Decentralized Physical Infrastructure Networks in Africa
In DePIN networks, individuals engage by utilizing either their personal hardware or specialized hardware tailored for the network. This can encompass a… pic.twitter.com/8mEcJaqoHL
— BitKE (@BitcoinKE) April 2, 2024
Decentralized AI
Part of the appeal of decentralized AI within the venture capital community lies in its potential to democratize AI technologies. Historically, AI advancements have been primarily centralized, dominated by major companies such as Google, Microsoft and OpenAI.
The demands and expenses associated with training superior models have risen substantially. Consequently, distributed ecosystems like blockchains have garnered significant appeal among small-scale players as a means to democratize resources.
BitKE recently did a piece on how decentralized computing and blockchain are paving the way for an inclusive future of AI in 2024.
Discover how decentralized computing and blockchain are shaping the future of artificial intelligence. This insightful post explores their pivotal role in creating a more inclusive AI landscape. Read it here: https://t.co/YlKfAmu3Jt
— Beyond The Ai – News (@BeyondTheAiNews) May 5, 2024
GameFi
The GameFi sector is undergoing a strong resurgence in venture capital investment, as evidenced by a notable increase in both funding and deal volume in early 2024. According to Konvoy Ventures, the sector attracted $594 million in the first quarter alone, representing a remarkable 94% surge from the previous quarter.
Additionally, it completed 124 deals, marking a 28% rise. This surge is propelled by the optimistic projection that the gaming market will grow to $225 billion by 2029, up from $189 billion in 2023.
BitKE recently covered a 2024 report by Konvoy Ventures, a video game-focused VC, which highlighted the state of the GameFi industry as of Q1 2024.
REPORT | South Africa’s Carry1st Was One of the Few Winners in a Declining Web3 Gaming Market in 2023
The lone deal across Africa in 2023 was raised by Carry1st, a leading game publisher and digital commerce platform from South Africa.
See the report synopsis below including an… pic.twitter.com/0g54ftw0aV
— BitKE (@BitcoinKE) March 15, 2024
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