Funding in Crypto Sector Reaches Its Lowest Since 2020: Crypto intelligence company Messari released a report on Thursday showing that funding for the crypto industry is still going down. This is because of the lack of clarity in U.S. regulations and the start of the criminal trial of FTX founder and former CEO Sam Bankman-Fried.
Even though Bitcoin’s price is up more than 60% over the past year, the 36% drop in crypto industry fundraising from the second quarter to the third quarter of 2023 shows that the crypto bear market hasn’t finished.
It’s part of a falling trend that began after the first quarter of 2022, when the most money was raised, which was more than $15 billion.
The Messari report said that the total amount raised in the most recent quarter, about $2.1 billion, was the lowest since the fourth quarter of 2020. Also, the 297 deals made in the crypto business to raise money during the quarter were the fewest since the fourth quarter of 2020.
Funding in the Crypto Sector Reaches Its Lowest Since 2020!
With 18% of the total amount raised, the blockchain infrastructure sector got the most funds, while the decentralized finance, or DeFi, sector had the most activity with 67 deals finished.
More specifically, 43% of the money raised by blockchain infrastructure projects went to growing solutions. For the DeFi market, exchanges closed the most deals and earned the most money. The last year has seen a lot of activity in these two sectors, as well as money moving into the gaming and business sectors.
With 23 deals, Binance Labs was the most busy investor in the crypto business in the third quarter of 2023. It has put most of its money into DeFi, games, and projects that work on zero-knowledge and privacy-based technologies.
The number of deals closed by Binance Labs was more than twice as many as the next closest investor. But the top 10 buyers only made up 7% of all crypto industry fundraising deals in the last quarter. This shows that there are a lot of different sources of funding.
Read More: New Study Unveils 88,200 Millionaires Grew Their Fortunes with Cryptocurrency!
Over the Course of the Third Quarter, the Crypto Bear Market Went Up!
The crypto bear market has been going on for a long time. There are many reasons for this, including legal uncertainty in the U.S. and a general loss of interest in the industry after the fall of crypto exchange FTX and other platforms.
This year, the U.S. Securities and Exchange Commission has sued a number of big cryptocurrency platforms and projects, like Binance and Coinbase.
Now, Sam Bankman-Fried, the founder of FTX, is being tried in court for theft and plot. At the same time, Congress is reviewing new rules for the crypto business in the form of new laws.
Must Read: Telegram Makes Self-Custodial Crypto Wallet Accessible Worldwide!
