The researchers emphasized that venture capital investment in the Bitcoin L2 space has reached $447 million, with 39% of the investment occurring in the first three quarters of 2024. Between January and September 2024, Bitcoin L2 projects received $174 million in funding, with $105 million going to sidechain projects and $63 million to rollups projects.
The researchers also noted that the second quarter of 2024 saw a significant change, with Bitcoin L2 projects accounting for 44% of the venture capital investment in the entire cryptocurrency industry's L2 networks. Compared to the first quarter, the investment amount in the second quarter increased by 159%. GAL explained that the growth in venture capital investment indicates that traditional cryptocurrency venture capital firms (excluding Bitcoin-focused funds) have had limited involvement in the Bitcoin ecosystem prior to 2024. GAL believes that as the ecosystem matures, cryptocurrency venture capital firms will continue to deploy funds to Bitcoin L2 projects.
