Indeed, while the majority of other industries saw decreases in Q1’22 owing to sluggish public markets and an unstable economy, venture capitalists have increased their focus on blockchain and cryptocurrency, with $9.2 billion recorded in quarter 1, 2022 Global blockchain funding, according to a report by CB Insights published on May 11. Web3, including non-fungible tokens (NFTs) and DeFi was the primary growth engine.
461 blockchain deals globally in Q1 2022
A record amount of equity investments were made to blockchain firms during the first quarter of 22. The total number of 461 increased by 15% quarter-over-quarter and 84% year over year, which is equivalent to almost seven deals being completed every working day. Eighty percent of worldwide blockchain deals were for early-stage businesses, the same proportion as in 2021. This indicates that the industry is not yet mature, and larger deals are yet to come. For the second quarter in a row, blockchain firms in the United States attracted more than $5 billion in fundraising, which accounts for roughly two-thirds of all funding globally. The government of the United States has started analyzing the potential advantages and disadvantages of cryptocurrencies, which is a step in the right direction toward more precise regulation in the United States. A more widespread acceptance of institutions may depend on proper regulation. Finally, the first quarter of 22 was the most successful quarter yet for blockchain mega-rounds. Only 6 percent of all transactions included $100 million or more, yet they accounted for 63 percent of all financing. Web3 companies received funding in eight of the top twelve biggest mega-rounds. The most often discussed topics were DeFi, NFTs, and the infrastructure and development of Dapps.
