Despite Bear Market, 2022 Fundraisers Have Surpassed 2021

The latest Messari report indicates that the market slump in the first half of the year did not affect investor confidence in the burgeoning crypto industry.

Targeted investments in the crypto industry reached $30.3 billion in the first half of the year, more than the whole year combined in 2021, according to Messari’s H1 2022 Fundraising Report. It shows that the market decline in the first six months has not shaken investors’ confidence in blockchain technology and cryptocurrencies.

Despite the infamous collapse of a group of CeFi projects in Q2, the sector remained strong in attracting investments totaling $10.2 billion, leading three other sectors, including infrastructure, DeFi, and Web3 & NFT.

According to a report made by Messari’s newly acquired Dove Metrics fundraising database, the uptrend in betting on crypto projects has demonstrated steady growth over the past 6 months compared to the previous six months. Traditional and crypto funds raised a total of $35.9 billion during the same period, surpassing full-year volumes of $19 billion in 2021.

In key areas, investments are leaning heavily towards early-stage projects, showing that investors see crypto as a growing industry with huge potential.

This trend was clearly reflected as Ethereum lost its lead on NFT during H1 as other upcoming ecosystems continued to gain funding. Ethereum-based projects only raised $1.1 billion through investments, much lower than projects based on other networks combined at $2.9 billion.

It should be noted that Solana-based NFTs have recently attracted attention due to low network fees. That is especially evident in the growing popularity of the Magic Eden marketplace, which raised $130 million in June of this year.

On the other hand, Ethereum-based DeFi protocols continue to dominate fundraising during the same period, with 56% and 82% of DeFi funding going to Ethereum in Q1 and Q2 respectively. The report adds that DEX and Asset Management products are the most popular among investors.

Centralized exchanges attracted $3.2 billion in the first half of the year, outpacing the second-ranked payment companies that received $1.58 billion in funding, despite the collapse of many environmental companies. world and famous lenders.

As a relatively mature field, CeFi had half a funding round with an amount of over $10 million from January to June, with total investment reaching $10.2 billion, down 5.6% compared to 2021. Additionally, 40% of the infrastructure funding round is going to Series A or late-stage projects, with smart contract platforms taking the largest share of the funding.

In summary, the report indicates that the deepening of the market crash in May and June did not hamper investor confidence in the industry as there was no sharp drop in volume across other sectors.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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