Web3 firms witnessed a remarkable 55% surge in investments during the first quarter of 2024 compared to the preceding quarter, as revealed by a report by QuickNode and Artemis.
The report highlighted a 36% increase in the number of venture capital deals within the web3 sphere during the same period. Notably, a considerable portion of these investments was channelled into projects related to artificial intelligence (AI) and gaming, underscoring a positive shift in investor sentiment towards web3 initiatives.
Seed round deals emerged as a significant beneficiary of this capital influx, experiencing a robust 53% quarter-over-quarter growth. Furthermore, series A seed funding sustained its upward trajectory from the previous quarter.
Pantera Capital’s successful conclusion of a $21 million Series A funding round for Mezo’s Bitcoin layer-2 network was among the standout investment transactions during this period. This venture capital injection not only provided investors with yield opportunities based on Mezo token holding durations but also positioned Mezo as a key player within the “Bitcoin Economic Layer.”
In another significant development, Paradigm Venture Capital Group spearheaded a massive $225 million funding round for a layer-1 blockchain network project, potentially poised to compete directly with established platforms like Solana. The recipient of this substantial investment, Monad Labs, aims to pioneer a layer-1 smart contract network boasting faster speeds and lower costs compared to Ethereum.
The increased flow of investment into the web3 sector in the first quarter of 2024 signals a strategic shift and growing investor confidence in the sector’s potential to drive meaningful societal impact.
According to the report, the first quarter of 2024 “has set a precedent for energetic and strategic engagements in web3, reinforcing the belief in its significant role in the broader technological ecosystem.”
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Disclaimer: This piece is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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