Crypto VC Funding Drops 20% in Q3 2024
Crypto venture capital funding experienced a 20% decline in Q3 2024, reaching $2.4 billion. Galaxy Digital’s report attributes this drop to a “barbell market” where Bitcoin and high-risk memecoins dominated, leaving mid-tier projects with minimal funding. The number of deals closed also decreased by 17% to 478.
The report highlights that large investors have been focusing on Bitcoin and new ETFs, showing minimal interest in early-stage crypto ventures. The correlation between Bitcoin’s price and venture funding has weakened, indicating a shift in investment trends. Early-stage projects, particularly crypto exchanges and blockchain firms, captured 85% of the total capital raised.
