Crypto Projects Raise Over $1 Billion in March 2024
Funding for cryptocurrency projects in March 2024 significantly outpaced the previous month, nearly doubling in amount.
Such investor enthusiasm is typical for a bullish market. Numerous apps and services are keen on listing their native tokens, aiming to capitalize fully on the positive market trends.
Let’s delve into March's standout investments and discuss how this insight can be leveraged.
Overview
January and February saw investments of $600 million and $660 million respectively into emerging blockchain startups. This sets March apart as an exceptionally fruitful month with investments in the blockchain sector surpassing $1.01 billion by March 29, according to Cryptorank data.
The distribution of investment rounds was as follows:
- Less than $1 million — 8 rounds;
- $1 million to $3 million — 23 rounds;
- $3 million to $10 million — 37 rounds;
- $10 million to $20 million — 15 rounds;
- $20 million to $50 million — 6 rounds;
- Over $50 million — 4 rounds.
The specifics of another 65 rounds remain undisclosed due to the projects opting not to release this information.
Continuing the trend from the previous month, investments ranging from $1 million to $10 million remained the most popular. Notably, the volume of larger investments increased; while February saw 13 rounds at $10 million, March witnessed a jump to 25 rounds in this bracket.
The sectors attracting the most funds were:
- DeFi apps — 39 rounds;
- Blockchain services — 32 rounds;
- GameFi – 25 rounds;
- Cryptocurrency networks (new blockchains) — 23 rounds;
- Blockchain infrastructure — 13 rounds;
- Centralized crypto services — 8 rounds;
- SocialFi — 7 rounds;
- NFTs — 7 rounds;
- Meme projects — 2 rounds.
Investment figures for crypto projects in March 2024. Source: Cryptorank.io
The decentralized financial infrastructure sector continues to lead in funding attraction. Additionally, there's been a notable increase in investment interest toward upcoming individual blockchains, with the majority representing Ethereum Layer 2 networks.
The only meme project to secure funding in March was Asterix Labs, inspired by the “Asterix and Obelix” movie characters. This startup wrapped up two investment rounds on March 12 and March 20, though the amounts raised have not been disclosed. Its backers include crypto funds like Spirit DAO, Hashed Fund, and Everest Ventures, along with several crypto influencers and angel investors.
The following projects stood out for securing the most funding in March:
- Optimism – $89 million (a blockchain network);
- Zama – $73 million (a blockchain service);
- Figure Markets – $60 million (the centralized finance sector);
- Succinct – $55 million (focused on blockchain infrastructure).
March didn't see dominance by any single investment niche. Notably, the Optimism project closed an $89 million investment round. Its OP token has been on the crypto market for nearly two years, boasting a market capitalization of $3.6 billion.
This could be seen as a positive sign, indicating ongoing project development and growth. However, there's a downside for the average crypto enthusiast: investments often mean that coins are bought at below-market prices. This could later put significant selling pressure on the price as major investors look to cash in on their gains.
Key cryptocurrency funds investing in March 2024 included:
- OKX’s venture arm – 13 rounds;
- Animoca Brands – 12 rounds;
- DWF Labs – 11 rounds;
- MH Ventures – 10 rounds;
- Spartan Groups and Cogitent Ventures – 9 rounds each.
Cryptocurrency funds investing in March 2024. Source: Cryptorank.io
The geographical distribution of the most appealing crypto projects for investors was as follows:
- USA — $431 million;
- Germany – $53 million;
- United Kingdom — $26 million;
- Hong Kong — $24 million;
- Canada — $12.7 million;
- Singapore and Australia — $12 million each;
- Unknown location — $381 million.
The investment geography for March 2024. Source: Cryptorank.io
How to Use Investment Data
The investment dynamics of cryptocurrency funds and capital injections into projects can offer insightful and practical information:
- Market Sentiment Indicator (Bullish/Bearish)
An increase in investment volume over a month—especially if it grows consistently month-to-month—signals heightened investor interest. You might use insights from professional analysts at major funds to guide your investment decisions.
- Spotting Promising Trends
Projects attracting substantial investor interest likely possess significant potential and are poised for future success.
- Developing an Investment Strategy
Information about the price at which coins are sold to investors and the schedule for when these tokens become publicly tradable can inform traders' on-chain analysis. This helps in predicting market supply impacts at various times.
Noteworthy Insights
- March saw no investment rounds closed for projects associated with stablecoins.
- Beyond Optimism, investments flowed into several long-listed crypto projects like Biconomy (BICO), QnA3.AI, and Entangle.
- Pac Finance, a Blast-based cryptocurrency lending platform boasting a TVL of over $300 million, completed a funding round on March 16. A week prior, users were warned about a potential bug in the platform's smart contract that might lead to a protocol compromise.
- KiloEx, a derivatives platform, wrapped up a strategic funding round on March 21 and announced a retroactive airdrop for its early adopters.
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