Crypto VC Investment Plunged 13% in April as Assets Record Outflows
 
 Highlights
- Crypto VC funds declined in April after previous highs.
- Funds into projects moved from 186 to 124 crypto firms.
- Reasons for the decline include plunging asset prices.
Crypto VC investments plummeted in April after previous upticks with the wider market sentiment. Statistics from RootData show a decline in the number of crypto VC projects in the first month of the second quarter despite previous bullish projections.
According to the source, April saw a 13.4% decking in VC numbers with funds moving to 124 projects. In March 2024, funds moved to 186 crypto projects as bulls sought to close in on the bitcoin halving anticipation. Despite the slight drop recorded last month, figures remain 23% up year-on-year from 2023.
Monad Labs and Berachain See Highest Flows
The $1.02 billion in VC funding was moved across different categories of web3 projects. Monad Labs saw an inflow of $225 million in a funding round led by Paradigm, Greenoaks, and Electric Capital.
Berachain ranked second with $100 million flows in a Series B funding led by top VC firms including Brevan Howard Digital, Polychain Capital, Tribe Capital, Hack VC, etc. The move boosted the company’s valuation to $1.5 billion.
Auradine came in third with $80 million in a series B funding round as top crypto VC firms poured funds into the miner manufacturer. Participants included Marathon Digital, and StepStone Group among others. The company raised funds to increase its capacity in producing mining machines as the halving momentum gripped the market.
Miners scrambled for old computer hardware ahead of the Bitcoin halving giving them more advantage in the market. Other firms that saw inflow from crypto VC companies include Movement, Mezo, Phoenix, etc.
Reason for the Drop in Crypto VC Funds
The main reason for the drop in crypto VC funds last month is the market’s bearish outlook as asset prices plunged. After the Bitcoin halving, institutional sentiment declined due to macroeconomic factors leading to massive sell-offs in Bitcoin, altcoins, and memecoins.
Q1 2024 saw increased figures as the price of Bitcoin hit a new all-time high following the approval of spot Bitcoin ETFs.
Also Read: Pantera Capital Backs TON Blockchain, TON Price Soars 10%
- Will Crypto Market Rebound or Crash Ahead as 10X Research Tips Shorting Ethereum?
- Sam Bankman-Fried Says FTX Was “Never Bankrupt,” Crypto Community Reacts
- XRP ETF Coming This November 13 As Canary Capital Submits Updated S-1 By Removing Roadblocks
- Canary XRP ETF Filing Removes SEC Delay Clause, Targets November Launch
- CFTC, SEC Launch ‘New Era of Collaboration’ to Clarify Crypto Rules, End Regulation by Enforcement
- XRP Price Outlook as ETF Nears Possible November 13 Launch
- Cardano Price Risks 20% Crash Amid Death Cross and Falling ADA ETF Odds
- Bitcoin Price Forecast as Trump Cuts Tariffs After US-China Trade Deal
- Analyst Foresees a Parabolic Rally for Pepe Coin Price as Whale Accumulation Intensifies
- Fidelity Amends S-1 for Solana ETF: Is SOL Price Set to Rally?
- Pi Coin Price Targets $0.65 as ISO 20022 Membership Boosts Institutional Confidence
 
 MEXC
MEXC 
					
					
					  
                                                                                                                                                                     
                                                                                                                                                                     
                                                                                                                                                                     
                   
                   
                   
                   
  
                                
  
                         
                     
                   
                   