Along with the general recovery momentum, the Capital market in the first half of 2024 will grow slightly compared to the end of 2023, but the cash flow scale is still not as large as the previous growth cycle.
Capital mobilization situation in the first 6 months of 2024 of the crypto market
Crypto market in the first 6 months of the year
Since the approval of the Bitcoin Spot ETF in early 2024, the entire market has experienced positive growth. In the first half of 2024, we will see the largest cryptocurrency in the market, Bitcoin, create a new peak at the 73,000 USD mark. Total market Capital increased from 1.6 trillion to 2.7 trillion, equivalent to 168%.
Besides, some top coins such as BNB, ETH, SOL have also approached or created new peaks compared to the previous cycle. Many keywords are exploding like BRC-20 , ERC-404 , RWA , AI , memecoin creating an exciting first half of the year for the cryptocurrency market.
The entire crypto market Capital is close to the peak of the previous cycle. Source: TradingView
Following in the footsteps of Bitcoin, the Ethereum Spot ETF has also been approved and is expected to start trading this July. Recently VanEck continued to apply for Solana Spot ETF , it can be seen that crypto is receiving more attention from institutional investors than ever, the gap between the cryptocurrency market and traditional finance is getting closer and closer. .
Not stopping at the financial market, crypto is becoming a target of politicians. After realizing that Donald Trump's crypto support received positive feedback, current President JOE Biden also made a 180-degree turn to attract voters.
Above is a summary of the first half of 2024 of the cryptocurrency market, next we will go into the main content of the Capital mobilization situation and notable points.
Capital flow cannot yet create All-time-high
Although Bitcoin has created a new peak, investment Capital flows have not yet done the same, not only that, in recent months investment activities have also shown signs of going down.
Investment Capital flows into the crypto market over time. Source: CryptoRank (June 29, 2024)
The total Capital that investment funds poured into the cryptocurrency market in the first half of 2024 is 5.34 billion USD through 861 investment rounds.
The most exciting crypto Capital market is the period from late 2021 to early 2022, when an Medium of about 5-7 billion USD is successfully mobilized monthly, the current number is only about 1 billion USD or less. than.
Even when compared with the same period in 2023, which is a gloomy year for the crypto market, the investment Capital flow in the first half of 2024 is still about 5% worse.
Similarly, the number of Capital calls is still less than in the previous cycle, but the decrease is not as large as the scale of cash flow. In the first six months of the year, a total of 861 Capital rounds were completed, an increase of 45% compared to the second half of 2023 and 28% compared to the same period last year.
The number of Capital rounds increased while the amount of investment decreased, indicating that investors are more cautious with investments in the crypto market. That also shows that project valuation is closer to reality than in previous cycles. The chart below will show this more clearly.
Structure of the size of investment Capital flows. Source: CryptoRank (June 29, 2024)
It can be seen that, in the past 5 years, the proportion of large investment deals is gradually decreasing while small deals tend to increase.
Investment rounds with Capital of over 50 million USD decreased from 7.98% in the 2019-2022 period to only 3.4% in 2023 and 2.38% in the first half of 2024. In contrast, investment rounds with Capital from 1-3 million USD and 3-10 million USD increased the rate by about 5%.
In addition, early investment rounds such as Seed, Strategic, Pre-seed are still familiar choices of investment funds not only this year but also in previous periods.
Structure investments in rounds. Source: CryptoRank (June 29, 2024)
The decline in cash flow in the Capital market may partly come from other investment trends in the general financial market. In the recent period, we have felt the heat of the field of Artificial Intelligence - AI , with big guys continuously pouring billions of dollars and considering it a key field of the decade.
Capital flows into the AI sector over time. Source: CBInsights
According to a report from CBInsight, in the first quarter of 2024 alone, $13.1 billion was poured into the AI field, 2.5 times more than the entire half of 2024 of the crypto market.
Are blockchain & crypto less attractive in the eyes of investors? The applicability of blockchain is not high? Or is it because the market's real growth season has not yet come?
In the author's personal opinion, blockchain & crypto are just gradually entering a stable development trajectory after the boom in the last cycle. The assessment, applicability and industry knowledge base are much clearer than in previous periods. In addition, the legal corridor is gradually being formed, we are taking slower but steady steps. than.
Infrastructure is still the Shard of the puzzle that receives the most Capital
There are not many changes in the market's investment portfolio structure, infrastructure-related Shard such as Blockchain Infrastructure and Blockchain Services are always the places that receive the most investment cash flow.
The explanation for this is because our blockchain industry is still in the stage of completing its infrastructure, so it is understandable that Capital flows here. Along with that, the scale of infrastructure projects is always much larger than dApp projects, so the Capital to maintain and develop is also more than the rest.
Crypto investment Capital flow by category in the first half of 2024. Source: CryptoRank (June 29, 2024)
In the first half of 2024, infrastructure Shard received 2.9 billion USD of investment, accounting for 54.4% of the total market Capital flow.
Notable investment rounds:
- Monad : is a Parallel Execution Blockchain that is highly compatible with EVM. According to Monad's announcement, transaction speed can reach 100,000 TPS. The project raised 225 million USD in April 2024 led by Paradigm, bringing the total Capital raised to 244 million USD.
- Berachain : is a Layer 1 blockchain developed based on Cosmos SDK with a unique consensus mechanism Proof of Liquidity. The project raised $42 million last year and recently $100 million from Framework Ventures, Polychain Capital, Hashkey Capital and many other names in April 2024.
- EigenLayer : is an infrastructure project for the reStaking ecosystem that helps secure the Ethereum network. EigenLayer raised a total of 164.5 million USD, the most recent Capital round was in February 2024 with the amount raised up to 100 million USD .
- Eclipse : is a Layer 2 blockchain designed with a modular structure that takes advantage of execution speed from SVM, security from Ethereum and DA from Celestia. Last March, the project successfully held a Series A round with a raised amount of 50 million USD led by Hack VC, Placeholder Ventures.
- Babylon : is a solution that provides security for other projects through Staking Bitcoin. The project has gone through 4 rounds of Capital raising with a total amount of 96 million USD raised from many famous funds such as Paradigm, Binance Labs, Polychain, OKX. The latest round took place in May 2024 with $70 million led by Paradigm.
Allocation of investment Capital flows in the entire crypto market in the first half of 2024 by category
Centralized exchanges are also a Shard of the puzzle that attracts a lot of investment Capital , receiving more than 744 million USD, accounting for 14% of the market share. Some outstanding deals include Bitstamp (200 million USD), Securitize (47 million USD), Figure Markets (60 million USD).
Other categories DeFi, GameFi, Non-Fungible Token, Social and Stablecoins saw slight growth compared to the second half of 2023 but were still much lower when compared to the period 2022 and before.
Notable investment rounds:
- Farcaster : the most exciting SocialFi project at the moment. The new project mobilized an additional 150 million USD in May 2024, bringing the total investment Capital to 180 million USD. Prominent investment funds include Paradigm, a16z, Coinbase Ventures.
- Polymarket : Polymarket is a decentralized prediction market platform built on Polygon, allowing users to participate in predicting events that may occur in the future across many fields. In just the first half of 2024, Polymarket successfully launched 2 rounds of Capital raising with a total amount raised of 70 million USD . The Series A round took place in January and the Series B round took place in May, participating funds included Founders Fund, Dragonfly and especially Vitalik Buterin.
- Parallel : is a card game developed by Parallel Studios, it is a combination of traditional card gameplay and innovative elements of modern games. The project raised 35 million USD in March 2024, before that the project also raised 50 million USD from Paradigm.
- Ellipsis Labs (Phoenix): is a decentralized limit order book platform on the Solana network. The project raised 20 million USD in April 2024 led by Paradigm.
The group of memecoin projects , which are a specialty of the crypto market and are very familiar but have never been included in the investment portfolio of funds, are recently showing signs of inflow.
Memecoin becomes a portfolio of funds. Source: CryptoRank
In the first six months of 2023, 19.4 million USD was poured into memecoin projects through 9 investment rounds.
Some outstanding projects include:
- Milady : Memecoin started from the Non-Fungible Token collection of the same name, which achieved impressive growth in the middle of last year after being posted a picture by Elon Musk. The project received 5 million USD investment from DWF Labs last June.
- Shiba Inu : The memecoin project inspired by Shiba, appeared in 2021, until now it has a large community of fans. Received 12 million USD from many famous investment funds such as Animoca Brands, Shima Capital, Kenetic Capital, DWF Labs. The funds raised are used to build Layer 3 focused on privacy and legal compliance.
- Degen : Degen has only appeared since January 2024 with the purpose of rewarding users on the Farcaster social network, it later developed into a Layer 3 on the Base network. The project called for 1.46 million USD from the 1confirmation investment fund in February this year.
- FLOKI : FLOKI is also a memecoin project familiar to the crypto community. The project raised 1.25 million USD from the DWF Labs investment fund.
If you remember, Ethereum founder Vitalik Buterin had a whole blog post about memecoin , he emphasized that the market needs more good memecoins and should add utilities to memecoin instead of just pumping it up. price. This is probably also the intention of funds pouring Capital into memecoin, developing utilities to serve existing "fan" files, which helps significantly cut down on user attraction costs.
- Read more: Crypto investment 2024 - Should you choose memecoin or technology coin?
Animoca Brands and OKX Ventures are the two most active funds in the first half of 2024
Animoca Brands and OKX Ventures are the two most active funds in the first half of 2024 with participation in 59 and 58 Capital calling rounds, respectively. Of which, Animoca Brands led 13 rounds and OKX Ventures led 9 rounds.
The most active investment funds in the first half of 2024. Source: CryptoRank
Next are a number of other funds such as Cogitent Ventures, Big Brain Holdings, The Spartan Group, Foresight Ventures,DWF Labs .
Coming to the list of Angel Investors, Dingaling and Sandeep Nailwal (co-founder of Polygon) are the two most active angel investors. Both Dingaling and Sandeep participated in 21 Capital rounds in the first half of 2024.
Investment appetite of some outstanding funds
In the first half of 2024, Paradigm pays a lot of attention to projects in the infrastructure segment, 6/8 of their investment deals are for this group, followed by DeFi and SocialFi.Paradigm can be said to be an investment fund that is not spread out. They choose to invest in a few projects and invest a very large amount of money. Usually when Paradigm is present, they will lead that investment round.
In contrast to Paradigm, Animoca Brands is the most spread out fund with 59 Capital calls across many project groups. However, GameFi, Social and Non-Fungible Token are the areas Animoca is most interested in. The number of game projects that this fund invests in in the first half of 2024 is up to 25 projects, with social being 8 projects. This is also what we often see at Animoca Brands in previous Capital mobilization reports, they always focus on the web3 and gaming application layer with many small deals.
Portfolio allocation of some prominent crypto funds in the first half of 2024
Binance Labs and Coinbase Ventures are two funds belonging to the two most active centralized exchanges in the crypto market. In the first six months of 2024, while Coinbase allocates a lot to projects in the infrastructure group, Binance focuses on DeFi. Besides, both funds are present in other categories: GameFi, Social and Stablecoin.
Some outstanding investments:
-Paradigm : Monad, Farcaster, Babylon, Succinct.
- Animoca Brands : The Sandbox, Kuroro Beast, Bondex.
- Binance Labs : MilkyWay, Rango Exchange, StakeStone, BounceBit.
- Coinbase Ventures : El Dorado, Conduit, Mountain Protocol, Paragraph, Puffer Finance, BOB.
Epilogue
Along with the general recovery momentum, the Capital market in the first half of 2024 will grow slightly compared to the end of 2023, but the cash flow scale is still not as large as the previous growth cycle.
In addition to the fact that investment funds are becoming more experienced and rigorous in each Capital injection, the breakthrough of other investment groups in the economy is causing cash flow to be dispersed.
We have come a long way in the growth cycle, hopefully in the next phase the crypto market will explode even more to continue attracting investors.
Above is all the information about the crypto Capital market in the first half of 2024, hopefully the article will help you in your research process.
Kudo
Join the discussion on the hottest issues of the DeFi market in the chat group Fomo Sapiens Let's join Coin68 admins!!!
