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RootData reveals a significant decline in both the number and total amount of venture capital investments in the cryptocurrency sector, with October marking new lows.
New data reveals that venture capital investments in the cryptocurrency sector continue to decline significantly. Root data reports that the number of publicly disclosed crypto venture capital deals in October decreased month over month and year over year.
In October, data shows 75 cryptocurrency-related VC deals, a 10% drop from September’s 83 deals, and a more alarming 45% drop from September’s 135 deals. month of last year. It should be noted that these figures could increase as some financings may not be reported immediately.
Drilling down into sector-specific investments, infrastructure projects received approximately 24% of the funding, followed by decentralized finance (DeFi) at 21%, centralized finance (CeFi) at 9%, and non-fungible tokens ( nft) and game financing. (GameFi) at around 13%.
In terms of total dollar amount, the industry received $430 million in funding during the month of October. This shows a 20% decline from $530 million in September and a more worrying year-on-year drop of 63%, down from $1.15 billion in October last year. The squeeze on venture capital funding raises critical questions about the future growth prospects of the crypto industry, especially in niche sectors like nft and GameFi.
