Crypto Fundraising Hits $10.04B in 2024: DeFi Leads Investment Surge

In 2024, crypto venture capital investment demonstrated robust growth, with publicly disclosed rounds reaching 1,530—a notable 25.1% increase from the previous year, according to RootData statistics. This upward trajectory in fundraising culminated in a total of $10.04 billion, reflecting a 7.59% rise from 2023.

The uptick in venture capital activity signals a positive outlook for the crypto sector. While the year commenced with vigorous fundraising primarily in the first two quarters, a decline ensued. This trend reversed post-Trump's US presidential re-election, attributed to fresh capital inflows.

Larger investment rounds exceeding $20 million saw a decrease compared to the previous year. Conversely, funding rounds between $1 and $20 million experienced an upswing. Notably, seed funding rounds represented a smaller slice of total activities, with strategic funding gaining prominence in 2024.

Despite a rise in venture capital allocation, sectoral preferences shifted distinctly. Blockchain infrastructure continued as the predominant recipient of VC funds in both years. In contrast, decentralized finance (DeFi) funding nearly doubled, claiming a solid second position, while centralized finance (CeFi) plummeted to fifth.

The largest single investment emerged in October, led by Stripe, the colossal payments platform, acquiring Bridge for $1.1 billion in a landmark transaction. This acquisition topped 2024's fundraising charts, significantly outpacing the nearest contender.

Qiao Wang, founder of Alliance DAO, noted the implications: “The $1 billion acquisition of Bridge by Stripe indicates a clear path for stablecoin startups, previously hindered by early token liquidity issues, toward successful exits. Anticipate increased funding and entrepreneurial ventures centered around stablecoins.”

Another substantial investment supported Australian miner Iris Energy, which secured $413 million in July.

The company aimed to enhance its operational capacity with these funds, intending to add 30 EH/s and 510 MW of data centers. Iris Energy's ventures also included a 1400 MW mining project in West Texas.

Prominent blockchain project Avalanche secured significant VC backing towards the year's close, reinforcing the trend of enhanced funding in blockchain infrastructure. On December 11, Avalanche executed a private locked-token sale, with substantial contributions from entities like Galaxy Digital.

Overall, 2024 has proven to be a bullish year for crypto investment. With the year commencing with Bitcoin ETF approval, institutional interest has surged dramatically throughout the space. Recent surveys indicate a high degree of optimism within the crypto community, reflected in these aggressive investment trends.