{"id":175425,"date":"2023-05-13T11:32:33","date_gmt":"2023-05-13T11:32:33","guid":{"rendered":"https:\/\/precoinnews.com\/?p=175425"},"modified":"2023-05-13T11:32:33","modified_gmt":"2023-05-13T11:32:33","slug":"crypto-vcs-dabble-in-2-6-billion-worth-of-deals-in-q1-2023","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/crypto-vcs-dabble-in-2-6-billion-worth-of-deals-in-q1-2023\/","title":{"rendered":"Crypto VCs Dabble In $2.6 Billion Worth Of Deals In Q1 2023"},"content":{"rendered":"
Despite the prevailing bearish trend in the crypto market, venture capital firms consummated several deals worth billions in the first quarter of 2023.<\/span><\/p>\n Data from <\/span>PitchBook\u2019s Crypto Report for Q1 2023<\/span> disclosed that crypto firms generated $2.6 billion through 353 investment rounds.\u00a0<\/span><\/p>\n Though the level of deals from the companies indicated the viability of the crypto space, there’s still evidence of its weakness.<\/span><\/p>\n According to the report, the first quarter of 2023 had the lowest amount of capital invested in the crypto space since 2020.<\/span><\/p>\n The total deals declined by 12.2% from the last quarter, while the quarter-on-quarter deal value dropped by 11%.<\/span><\/p>\n The report highlighted that Q1 2023 marks the fourth consecutive quarter of dipping investment activity for VCs.\u00a0<\/span><\/p>\n Notably, the number and value of VCs deals decreased by 64.4% and 78.0%, respectively, from the same quarter in 2022.<\/span><\/p>\n Further, the report indicated a mix in the valuation trends. Seed and late-stage rounds grew by 33.3% and 209.2%, respectively, compared with the full year of 2022. But early-stage rounds plummeted by 16.7% during the same period.<\/span><\/p>\n Also, the report noted that the crypto bearish trend could continue. But the space still has some positive outlooks currently.\u00a0<\/span><\/p>\n For instance, layer 2 scaling solutions have been doing great, maintaining their growth from last year.<\/span><\/p>\n The data highlighted a blockchain-based firm, Blockstream, that raised $125 million for funding a Bitcoin mining infrastructure.\u00a0<\/span><\/p>\n Also, another company committed to developing zero-knowledge Ethereum Virtual Machine scaling solutions, Scroll, has done well. The firm raised $50 million in a late-stage VC round.<\/span><\/p>\n The crypto market has continued to show red charts as prices of most assets witness more losses. Subsequently, the cumulative crypto market cap <\/span>declined<\/span> over the past 24 hours. Also, the total crypto market volume plummeted 8.10% within the past 24 hours to $42.75 billion.<\/span><\/p>\n The primary crypto asset Bitcoin has been struggling within the past few days. According to data from <\/span>CoinMarketCap<\/span>, Bitcoin’s price has continuously declined for the past week.<\/span><\/p>\n The token dropped from the $29,000 region to the $26,000 level. The seven-day price action shows that BTC plummeted by over 9%.<\/span><\/p>\n At the time of writing, Bitcoin is trading at <\/span>$26,759<\/span> after losing minor gains over the past 24 hours. Its market cap now sits at $511 billion, with a market dominance of 46.30%.<\/span><\/p>\n <\/p>\n The altcoins are also seeing a declining price trend. Ethereum plummeted by 0.21% in the past 24 hours as the price moved to $1,800. Its seven-day active price shows a dip of over 7.40%.<\/span><\/p>\n -Featured image from Pixabay and chart from TradingView.com<\/em><\/p>\nReport Highlights Declines In The Number And Value Of Investment Deals<\/h2>\n
Overall Decline In The Crypto Market<\/h2>\n