Crypto Venture Capital Funding Raised Over $1B in April and March, Signaling Onset of Bull Season

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As an analyst with a background in crypto markets and venture capital, I find the trend of increasing crypto fundings in April 2024 particularly intriguing. With seed funding rounds dominating and institutional investors from the US, Singapore, and Britain leading the charge, it’s clear that web3 infrastructure development is gaining momentum.

As a crypto investor keeping a close eye on the Bitcoin halving, I’ve noticed that venture capital firms have been actively fundraising to establish the essential infrastructure for digital assets and web3 protocols to gain widespread adoption. According to Rootdata’s market data, an impressive $1.024 billion was raised by various web3 projects last month, which is just a slight dip from the $1.094 billion amassed in March.

The cryptocurrency market is currently experiencing an early phase of a significant bull rally that is projected to last until the end of next year, as previously discussed by Coinspeaker. Notably, the approval of spot Bitcoin Exchange-Traded Funds (ETFs) in both Hong Kong and the United States could trigger widespread adoption of digital currencies.

Crypto Fundings in April Under the Scope

As a researcher studying the crypto venture capital market in April 2024, I observed that seed funding rounds were the most prevalent, accounting for a significant portion of investments. Following closely were strategic and pre-seed rounds. The United States, Singapore, and Britain emerged as the leading nations in terms of fundraising during this period. Institutionally, investors in these regions have been quickening their strides towards adopting web3 technologies and digital assets.

With the notable surge of layer-1 chains like Solana (SOL) and Toncoin (TON), there has been a growing trend among web3 developers to construct advanced blockchain frameworks. Consequently, crypto investment firm Paradigm spearheaded a $225 million financing round for an L1 project engineered by Monad Labs in April.

Last month, I was thrilled to learn that Menzo, a Bitcoin L2 network, successfully closed a Series A funding round with approximately $21 million in investments. Another significant web3 financing event took place around the same time, as Securitize raised roughly $47 million in a funding round led by BlackRock Inc. (NYSE: BLK).

In April, other prominent web3 projects that secured significant funding were Auradine and the Cosmos-layer-one project, Berachain. They raised approximately $80 million and $100 million respectively.

In April, VC Paradigm disclosed its plans to amass a total of $850 million for a fresh crypto investment fund. Likewise, Pantera Capital unveiled its intention to gather $1 billion for Fund V, focusing on backings for blockchain startups.

Market Picture

The cryptocurrency market sector experienced a significant drop of approximately $500 billion in April, equating to around 16 percent, leaving it valued at roughly $2.34 trillion as of Monday. Previously hinting at potential decreases during the recent crypto correction, Bitcoin’s (BTC) closing price for the week displayed a Doji candlestick pattern – an indication suggesting a bullish reversal in the near term.

In the past 24 hours preceding the London trading session on Monday, Bitcoin’s price experienced a significant surge of approximately 3 percent. This upward trend indicates that Bitcoin could potentially reach prices above $70,000 in the coming days.

#Bitcoin
Tomorrow was the planned posting date, but my eagerness just isn’t letting me wait. The price chart of Bitcoin ($BTC) shows an intriguing candlestick pattern reminiscent of the one observed in January 2024, which subsequently led to a significant price surge.
— Mikybull 🐂Crypto (@MikybullCrypto) May 5, 2024

Despite Bitcoin’s current dominance of around 55%, there is a strong possibility for a turnaround, leading to a revitalized period for alternative cryptocurrencies or altcoins. Additionally, the increasing trend of tokenization in various sectors like real estate, stocks, and bonds has attracted both institutional investors and retail traders towards altcoins.

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2024-05-06 12:21