While the crypto markets have seen poor performance in the first two quarters of 2022, a recently published fundraising report conducted by Messari researchers notes that $30.3 billion dollars were raised from crypto projects and startups in the first half of 2022. $30.3 billion raised through 1,199 fundraising rounds surpassing all projects and startups Blockchain industry funding obtained last year.
H1 Crypto Ecosystem Funding Report Shows Funding Continues to Flow Despite Crypto Winter
According to the “H1 2022 Fundraising Report” published by Messari and Dove Metrics, a subsidiary of Messari Holding Inc. Follow reportcentralized finance (cefi) overtakes decentralized finance (defi), as cefi raked in over $10.2 billion in the first half of the year.
Defi managed to raise $1.8 billion, while Web3 projects and non-fungible tokens (NFTs) and related companies raised $8.6 billion in six months the begin of the year. $9.7 billion has been poured into the blockchain and crypto infrastructure sector and while Web3 and NFTs saw the third largest amount of capital raised, the Web3-NFT sector saw many The most funding round with 530 rounds in the first two quarters.
Defi’s biggest month was June, when several defi projects and businesses raised $624 million. “Despite DeFi’s maturity, seed rounds continue to dominate,” the Messari researchers explained in the report. The most money raised in a month for infrastructure is February, for cefi the highest month is January and the best month for the Web3-NFT sector is April.
Defi projects and Ethereum-based startups received the most rounds and highest amounts, compared to alternative smart contract blockchains like Solana, Avalanche, and Polkadot when it comes to fundraising. Ethereum-based defi projects had 54 transactions in Q1 and 61 transactions in Q2. In Q1, Ethereum-based defi projects raised $387 million while projects from blockchains alternative raised $309 million in the first quarter of 2022.
In Q2, ETH-based defi raised $890 million while alternative-chain-based projects raised around $193 million. Messari researchers note that in the Web3-NFT arena, early-stage funding that regulates allocation and gaming has largely eclipsed NFT funding. Once again, Ethereum also dominates in the Web3-NFT industry, compared to alternative smart contract platform networks.
Cefi, Infrastructure, Web3 Sectors Mature
As far as centralized financing is concerned, cefi “continues to grow,” the Messari report said as it highlighted that $10 million+ funding rounds “account for 50% of the activity.” Messari’s latest H1 fundraising report follows the “4th Annual Global Cryptocurrency Hedge Fund Report 2022” published by international professional services firm Pricewaterhousecoopers (PWC).
Details from PWC Recent Crypto Research shows that hedge funds pouring capital into crypto and blockchain projects has increased since last year. PWC researchers estimate that 21% of hedge funds have participated in funding rounds tied to crypto, while participation this year is as high as 38%.
Messari’s fundraising report details that many sectors are “merging” as Series A funding rounds and above account for more than 40%+ of H1’s crypto infrastructure-specific rounds. Web3’s Series A rounds and above equate to approximately 30%+ of funding rounds in the first half of 2022. Investors mentioned in Messari’s fundraising report include companies like FTX, Mechanism Capital, Pantera Capital, Sequoia Capital, Gumi Cryptos, Dragonfly Capital, Slow Ventures, Seven Seven Six, and about a dozen and a half others.
What do you think of Dove Metrics’ and Messari’s H1 fundraising report? Let us know your thoughts on this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Charts via report authored by Dove Metrics and Messari Holding Inc.
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