Crypto Projects Raise $335M in January 2024
In the first three weeks of January 2024, cryptocurrency projects have garnered $335 million from various investment funds. Is this a significant figure, and what does it suggest about investor interest in the crypto market at the outset of the new year?
For context, December 2023 witnessed over $800 million in investments, nearly triple the current amount. However, it's premature to sound the alarm as this dip could be attributed to the usual slowdown during the holiday season.
Overall Investment Data
A total of 41 investment rounds were completed in January, with the following distribution:
- Under $1 million – 7 rounds;
- $1 million to $3 million – 15 rounds;
- $3 million to $10 million – 11 rounds;
- $10 million to $20 million – 6 rounds;
- $20 million to $50 million – 1 round;
- Over $50 million – 1 round.
The amounts of an additional 19 investment rounds remain undisclosed. This data suggests that crypto projects are currently seeking relatively modest amounts in private token sales, possibly aiming for imminent coin listings while the crypto market shows upward momentum.
In terms of investment categories, DeFi projects led with 14 rounds, followed by blockchain services (13 rounds), centralized platforms (7 rounds), blockchain infrastructure (7 rounds), SocialFi projects (6), NFTs (4), specific cryptocurrency networks (2), and one meme project.
Investment statistics for crypto projects in January 2024. Source: cryptorank.io
The noted meme project is Memecoin (MEME), which, despite being a long-standing token on crypto exchanges, secured an undisclosed amount from Binance Labs.
Top fundraisers among crypto projects in January 2024 included:
- $100 million – HashKey Group (CeFi);
- $50 million – Flowdesk (CeFi);
- $20 million – Tune.FM (Social);
- $15 million – Finoa (CeFi).
Notably, centralized crypto services and exchanges appear more appealing to investors. The smallest investment amount is not disclosed.
Prominent crypto funds this month include OKX Ventures, leading with 5 investment rounds. NcGen and SevenX Ventures closed 4 rounds each, while Binance Labs, Polychain Capital, Wintermute, and others completed 3 rounds each.
Crypto funds and their January 2024 investments. Source: cryptorank.io
Geographically, the distribution of cryptocurrency project investments was as follows:
- Hong Kong – $100 million;
- France – $67 million;
- USA – $30 million;
- Singapore – $26 million;
- Germany – $15 million;
- Argentina – $12 million;
- Unknown jurisdiction – $57 million.
Project locations receiving investments in January 2024. Source: cryptorank.io
It seems that Asian countries continue to be hotspots for cryptocurrency startup registrations, owing to their favorable tax regimes and crypto-friendly legislation.
How to Use Investment Data
The analysis of investment volumes and the number of rounds in cryptocurrency projects can yield valuable insights into several facets:
- Additional funding for existing projects signifies ongoing development efforts and code enhancements by the team, reflecting the sustained attractiveness of the investment.
- Significant investment volumes indicate a project's potential for high profitability and the likelihood of success for its native token if launched.
- The overall volume of investments mirrors the broader trends and dynamics of the cryptocurrency market.
- The types of projects that attract the most investment could indicate areas of heightened demand and interest among users in the future.
Interesting Facts
- On January 11, Orbiter Finance completed a funding round. The anticipation around Orbiter releasing its own token and a possible retroactive airdrop could be a strong indicator of such an event happening soon.
- Notable investments in projects like Ta-Da and Polyhedra Network, which currently lack their own tokens, hint at the potential for these projects to issue tokens in the future
- On January 5, the Ethereum Foundation funded the Solscan blockchain explorer for the Solana network. This move is intriguing given the competitive relationship between Ethereum and Solana.
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