Crypto startups have seen a massive influx of funding over the past ten years, surpassing the impressive milestone of $100 billion since May 2014.
Despite facing regulatory uncertainties and market fluctuations, the industry has experienced both highs and lows, with funding continually reaching new heights.
Data compiled by TVL aggregator DefiLlama shows that the total funding in the cryptocurrency industry has reached $101.35 billion as of June 16, 2024.
Looking back to May 2014, just five years after Bitcoin’s creation and a year before Ethereum’s launch, the recorded funding for cryptocurrency startups was a modest $17.14 million. Jumping ahead ten years to May 2024, funding for the industry soared to $280.25 million for the month, falling slightly below the record set the previous month at $777.11 million.
The peak of cryptocurrency startup funding was in October 2021, with over $7 billion raised in that month. The second-highest recorded funding occurred in February 2022, totaling $3.67 billion.
Research shows that almost half of all cryptocurrency funding comes from investors in the United States, with the rest distributed among various countries. The United Kingdom accounts for 7.7% and Singapore for 5.7% of the investments, based on figures from the second quarter of 2023.
Recent high-profile funding deals took place between late 2023 and the first half of 2024. Companies like Together.AI and cross-chain protocol Wormhole secured investments of $225 million each, while Totter and Eigenlayer raised $101 million and $100 million, respectively. Other notable funding rounds include Swan Bitcoin’s $165 million raise and Blockchain.com’s $110 million.
These significant investments showcase the ongoing confidence and interest in the cryptocurrency industry.
In the first quarter of 2024, the crypto market experienced a surge in fundraising, reaching $2.4 billion. A total of 518 deals amounting to $2.3 billion were closed in the first quarter, marking a 40.3% increase in investments compared to the previous quarter.
With the approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) in January, institutional investors now have easier access to the crypto asset class. This decision has opened up new opportunities for including cryptocurrencies in investment portfolios.
The cryptocurrency industry continues to evolve and attract significant funding, showcasing its potential for growth and innovation in the years to come.