Crypto VC Investment Reaches $3.2B in Q2, Defying Market Lull: Galaxy Digital
Venture capitalists are showing continued interest in the crypto sector, defying the market lull, according to a recent report published by Galaxy Digital.
In the second quarter of the year, crypto startups managed to raise an impressive $3.2 billion, marking a 28% increase from the $2.5 billion raised in the previous quarter.
While this figure is still a substantial distance from the nearly $10 billion invested in crypto projects during the second quarter of 2022, the report indicates that “crypto venture capital sentiment continues to improve.”
The rebound in venture capital interest in the crypto industry follows a trend observed earlier this year, which aligned with the rise in crypto prices.
However, despite Bitcoin hitting an all-time high in March, crypto venture capitalists have not matched the broader market’s enthusiasm, especially as Silicon Valley remains preoccupied with AI-related developments.
Within the $3.2 billion invested in the crypto sector, a significant portion was allocated to web3 projects.
Startups involved in web3, decentralized autonomous organizations (DAOs), the metaverse, and gaming captured 24% of the VC capital, amounting to $758 million.
Notably, the largest raise in this category was the $150 million secured by Farcaster, a social media protocol.
Layer 1 projects and Bitcoin layer 2 solutions also attracted substantial capital, as indicated by Galaxy Digital.
Monad Labs, aiming to build a faster version of Ethereum compatible with Ethereum’s coding language, raised $225 million, making it the largest funding round of the quarter.
Additionally, Berachain, a layer 1 project, secured $100 million at a valuation of $1.5 billion, according to Bloomberg.
Investor interest in Bitcoin layer 2 solutions,
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