Web3 Funding Sees Slight Increase in Q1 2024, but Venture Dollars Still Down Year-Over-Year

Web3 funding experienced a slight increase in Q1 2024 compared to Q4 2023, which is the first rise since Q4 2021. However, venture dollars are still down year-over-year and far from the highs seen in 2021-22. Startups in the crypto and blockchain sectors raised almost $1.9 billion in Q1, a 58% increase from Q4 2023, but a 17% decrease from the same quarter in 2023. Despite the challenges faced by Web3, such as a pullback in venture funding and cryptocurrency difficulties, there is potential for growth with the rise in crypto prices and the approval of Bitcoin ETFs. Monad Labs, a layer-1 blockchain compatible with Ethereum Virtual Machine, recently secured a $225 million funding round led by Paradigm, marking the biggest Web3 funding round of the year so far. This could be a sign of more large-scale funding to come, as investor interest in cryptocurrency and blockchain startups remains strong, according to first quarter data analyzed by Crunchbase. The support of Fidelity and the upcoming Bitcoin halving event may also contribute to further growth and attract new venture investments in the crypto industry.