Crypto Investments Surge to 18-Month Peak, Early-Stage Deals Soar

Cryptocurrency witnessed a significant surge in March totaling over $1.4 billion in investment to reach its highest point in 18 months. This spike in investment is fueled by a flurry of early-stage investments into blockchain-related ventures.

Available data from The Block Deals Dashboard shows that new funding for crypto companies soared past $1.4 billion. The last time such substantial investment inflow happened was in September 2022, when the sector witnessed over $2 billion in funding.

Early-Stage Crypto Investments Propel Growth

John Dantoni, The Block’s Research Director explains that the spike in March’s investment boom was in early-stage, or Series A, investments, with more than 20 of such deals recorded during the month. This represents an increase from February, which saw only nine early-stage investments.

The surge in Bitcoin’s price, hitting an all-time-high above $70,000 for the first time in March also contributed to the uptick in funding experienced in cryptocurrency prices.

On his part, David Garcia, co-founder and managing partner of Borderless Capital, attributed the increase in new deals to the availability of more capital in the market. For instance, Borderless Capital recently invested $15 million in the DePIN Layer 1 blockchain project.

Dantoni emphasized that March’s investment surge signifies the vitality of venture capital (VC) activity in the crypto market, with three consecutive months of consistent upticks in deal activity, resulting in a 64% month-over-month increase in venture funding.

Token Sales and Infrastructure Investments

Another key contributor to the crypto investment in March is Token sales. Monad Labs and Optimism raised substantial amounts of $213 million and $89 million, respectively, through token deals categorized as “infrastructure” investments.

The overall investment milestone for crypto and blockchain-related companies exceeded $90 billion last month, just $10 billion shy of the $100 billion mark. This was a significant milestone since The Block Research began tracking crypto investments in 2017.

Future Outlook and Investor Participation

Analysts believe that with the influx of venture capital into crypto projects is expected to continue, with investors like Marc Andreessen, Accolade Partners, and Galaxy Digital participating in the latest fund of crypto VC firm 1kx, which raised $75 million.

1kx focus is on consumer-targeted crypto applications and it has made strategic investments in projects like Kiln, Pudgy Penguins, Rarible, and The Sandbox.