According to data released by blockchain firm Messari, the crypto industry is facing a significant downturn, with fundraising rates falling to the lowest level in the last three years in the third quarter of this year.
Fund Raising Rates in the Crypto Sector Decreased
In the third quarter, crypto firms secured just under $2.1 billion across 297 deals, the lowest figures recorded since Q4 2020.
This data comes from Messari's latest comprehensive report on the state of crypto fundraising.
This sharp decline follows the peak performance in Q1 2022, when the industry witnessed an impressive inflow of around $17.5 billion through over 900 deals.
However, as the year progressed and market conditions became increasingly difficult, fundraising numbers became increasingly scarce. This culminated in the sudden crash of the FTX exchange in November, marking a critical turning point for the industry.
Despite the overall decline, resource generation efforts showed resilience in both Q1 and Q2 2023. Approximately $7.5 billion was successfully raised across 200 deals in both quarters.
These figures were almost exactly the same as in the 4th quarter of 2022. However, both the amount raised and the number of deals dropped significantly by 36% in Q3.
Messari's report also shed light on the changing investment focus in the crypto space. Investors are now turning their attention to early stage projects and new investments in infrastructure rather than user-oriented applications.
This strategic shift points to a broader industry trend where stakeholders are looking to strengthen key elements of the ecosystem.
*This is not investment advice.
