Crypto Market Experiences 31% Decline In Venture Capital Investments In June
Venture capital investments in the crypto market fell by 31% in June from the previous month, to $520 million. However, cryptocurrency investment product inflows saw a significant increase, marking their highest since July 2022.
In the latest figures, June 2023 saw a significant 31% dip in venture capital (VC) investments in the crypto market compared to May 2023, with the total amounting to a relatively modest $520.1 million from 83 deals. This downturn also marked a striking 71% drop from the same month in the previous year.
Data from analytics firm RootData revealed that June 2023's VC funding in the crypto market was the lowest in recent years. The number of deals also experienced a 14% decrease from May 2023's 97 deals to 83 in June.
Fewer Deals, Lower Totals
Despite this downturn, VCs have funneled more than $4.5 billion into the crypto market over 607 deals in 2023. Yet, compared to the same period in 2022, the investment and deal volume has declined by a significant 65% from $20.4 billion over 910 deals.
The sectors that attracted most investments in June 2023 included:
- Infrastructure, 31%
- NFT and GameFi, 20%
- DeFi, 18%
- Centralized Finance (CeFi), 8%
Some of the largest investment deals of June 2023 included:
- Gensyn, a blockchain company developing AI solutions, secured $43 million.
- Mythical Games, a blockchain game developer, closed a funding round at $37 million.
- Galaxy Finance raised $30 million for a crypto wallet development.
- Arkon Energy, a mining company, attracted $26 million for renewable energy development for crypto mining.
- Insurance company Meanwhile obtained $19 million to develop a Bitcoin life insurance policy.
Despite the overall drop in VC funding in the crypto market, CoinShares' analysis highlighted a rise in cryptocurrency investment product inflows, totaling $199 million in June 2023. This is the highest since July 2022, and can be attributed mainly to BlackRock's application for a Bitcoin ETF in the U.S.
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