Crypto Projects Raise $639M in February 2024
In February 2024, cryptocurrency projects successfully raised $639 million through private and strategic investment rounds, engaging a host of major companies and funds.
But how does this stack up? Comparing these figures to previous months provides context: in December 2023, projects raised $800 million, but in January, the amount dropped to just $335 million.
Summary of Investments
Throughout February, a total of 123 investment rounds were completed. The breakdown of allocations is as follows:
- Less than $1 million — 4 rounds;
- $1 million to $3 million — 31 rounds;
- $3 million to $10 million — 34 rounds;
- $10 million to $20 million — 6 rounds;
- $20 million to $50 million — 6 rounds;
- Over $50 million — 1 round.
The investment amounts for another 41 rounds remain undisclosed.
Projects predominantly sought funding in the range of $1 million to $10 million, indicating an improvement from January, where investments mostly varied between $1 million and $3 million. This trend suggests a gradual increase in interest from investment funds.
The sectors receiving the most investment in February were:
- DeFi (Decentralized Finance) applications — 34 rounds;
- Blockchain services — 25 rounds;
- GameFi — 18 rounds;
- Blockchain infrastructure — 16 rounds;
- Independent cryptocurrency networks (new blockchains) — 11 rounds;
- SocialFi — 10 rounds;
- Centralized crypto services — 3 rounds;
- Stablecoins — 2 rounds;
- NFTs — 2 rounds;
- Meme projects — 1 round.
Investment Data for Crypto Projects in February 2024. Source: Cryptorank.io
The only meme project in the list was Degen (Base) startup with its native DEGEN token on the Base network. The coin has long been listed on exchanges. Interestingly, when the investment round was announced on February 19, the asset’s value surged by 3000% within an hour but returned to its pre-announcement price shortly thereafter.
Projects securing the highest funding included:
- EigenLayer — $100 million (Blockchain Infrastructure);
- Flare — $35 million (Chain);
- Ether.fi — $27 million (DeFi);
- Avail — $27 million (Chain);
- MetaStreet — $25 million (DeFi);
- Oobit — $25 million (CeFi).
This indicates a heightened interest in decentralized blockchain applications from investors in February.
Among the crypto funds investing during February 2024, notable entities included:
- Foresight Ventures, which closed 9 rounds;
- Cogitent Ventures, Big Brain Holdings, Cypher Capital, and Animoca Brands, each participating in 7 rounds.
Other funds were less active in their investments.
Crypto Funds Investing in Crypto Projects in February 2024. Source: Cryptorank.io
In the landscape of crypto project investments for February 2024, geographical distribution highlighted several key jurisdictions as prime destinations for funding:
- USA: $217 million
- United Kingdom: $39 million
- Cayman Islands: $27 million
- Singapore: $23 million
- Canada: $17 million
- Unknown locations: $303 million
Project Locations Receiving Investments in January 2024. Source: Cryptorank.io
This distribution underscores the continued attractiveness of the US, Canada, and Asian countries as hotspots for cryptocurrency startups.
How to Use Investment Data
Investment activity serves as a robust fundamental indicator, offering insights into both specific projects and the broader market landscape.
- Projects that attract significant investor attention are likely poised for future success and potential growth.
- Additional investments in an ongoing project signify a commitment to active development and progress.
- Public tokenomics allows traders to monitor the volume of tokens distributed to investors, offering clues about potential market impacts as these assets become tradable.
Noteworthy Highlights
- A notable investment exceeding $164 million was directed towards the cryptocurrency project EigenLayer. Future rewards in the form of retroactive airdrops are anticipated for users who stake their ETH with EigenLayer.
- Beyond traditional investment funds, February saw substantial contributions from business angels, including high-profile investments by Balaji Srinivasan (ex-CTO of Coinbase), Anatoly Yakovenko (co-founder of Solana Labs), and the anonymous investors Mr. Block and Kun Gao.
- Seed rounds emerged as the most lucrative phase, amassing $174 million in investments. The interval between a project’s Seed round and its eventual market debut can span from six months to several years, indicating a long-term investment horizon.
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