VC Firms Pour Nearly $660 Million in Crypto Startups in September

As a seasoned crypto investor with a knack for spotting trends and opportunities, I find the recent surge of VC funding into the blockchain gaming sector particularly intriguing. The potential blend of artificial intelligence and blockchain technology holds immense promise, and Balance Games’ $30 million influx is a testament to this. However, it’s the massive investment in infrastructure startups like Celestia that truly catches my eye, as these are the foundations upon which the future of blockchain will be built.


In September, venture capital firms invested a total of $659 million into cryptocurrency startups, which represents a 3% increase compared to August, according to DeFiLlama’s data. Notably, the blockchain gaming sector was a major focus for VC funding last month, attracting significant investments for the second month in a row. In fact, venture capital firms invested $63 million into blockchain games during September, marking a 32% monthly growth rate.

In the realm of blockchain gaming, Balance Games secured over half of the investment received by new startups in this field. Specifically, it raked in $30 million from investors like a16z, Animoca Brands, DWF Labs, and Aptos Labs. Their ambition is to merge artificial intelligence and blockchain technology to create more engaging user experiences.

In September, projects focused on building blockchain infrastructure managed to raise a grand total of $457 million in funding following their gaming sessions. This amounted to an impressive 71.5% of the overall funds procured by the entire cryptocurrency industry during that period.

In the latest development, Celestia has secured a strategic funding of $100 million, which represents the largest investment so far in infrastructure startups. This round was spearheaded by Bain Capital Crypto, with further investments from 1kx, Robot Ventures, Syncracy Capital, and Placeholder. The company’s current value stands at approximately $5.13, while its market capitalization is around $1.10 billion. Over the past 24 hours, its volume has been about $182.38 million, and its volatility for the same period is 6.3%.

In a notable move forward, the fintech company Huma Finance has managed to secure $38 million in investments. This fresh capital will be utilized to further develop their blockchain-centric payment system. The investment round drew interest from Fenbushi Capital, HashKey Capital, and ParaFi Capital.

VC Funding in DeFi Is on a Decline

It’s interesting to note that even though advancements in blockchain infrastructure have remained steady, venture capital funding for DeFi projects has been decreasing. For instance, in September alone, DeFi startups only managed to secure $58 million in investments – a significant drop of 55% compared to the previous month, August.

In the world of DeFi funding, Drift emerged as the leader after successfully securing a $25 million Series B investment led by Multicoin Capital. Not far behind, Puffpaw, an innovative “earn while vaping” application developed on Binance Smart Chain, garnered one of the second-largest investment rounds among DeFi startups.

Moreover, the adoption of Web3 experienced a notable surge last month, as investments totaling $59 million were poured into startups that are developing blockchain-based replacements for conventional services.

During the month of September, Bitcoin and the overall crypto market experienced a robust rebound, with its price reaching approximately $61,290 – an increase of 8%. Additionally, there was a noticeable surge in investments into spot Bitcoin Exchange Traded Funds (ETFs) post-mid-September, following the Federal Reserve’s interest rate reductions.

It’s evident that there’s growing enthusiasm for the cryptocurrency market, as an increase in liquidity might stimulate greater investment in high-quality crypto initiatives due to the influx of additional funds.

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2024-10-04 14:44