Author: Rootdata
Abstract
The total funding in Crypto space reached $2.545 billion in 2024 Q1, a 4.7% YoY increase. The DeFi experienced over 100% growth in funding, driven by popular sectors like RWA and LSD. Spot Bitcoin ETFs attracted over $12.1 billion, pushing Bitcoin prices above $72,000, setting a record high.
The number of funded projects in 2024 Q1 increased by 10.5% YoY. Infrastructure, DeFi, and GameFi garnered significant capital market attention. The top 10 most active investors saw a 120% increase in total investments, with OKX Ventures being the most active.
Crypto investors’ attention was significantly influenced by large investments from prominent institutions, token issuances, and airdrops. AI, RWA, LSD, and DePIN saw significant rotation, with 113 projects making it to RootData’s Top20 weekly trending projects. Among these, 12 projects with issued tokens displayed a high correlation between RootData’s search popularity and secondary market trends.
During Q1, investment targets like the “Sam Altman concept” garnered significant market attention. Trading opportunities based on prominent figures are increasingly being noticed by investors. As the Web3 industry matures and attracts more mainstream investors and entrepreneurs, trading opportunities related to personalities and events will continue to emerge.
I. 2024 Q1 total funding exceeded $2.6 billion, with a 4.7% YoY growth; DeFi funding grew over 150% QoQ.
The U.S. SEC approved 11 Bitcoin spot ETFs for trading and listing on January 10. By March 31, the total inflow for spot Bitcoin ETFs exceeded $12.1 billion, with assets under management reaching $58.341 billion. Driven by strong demand for spot Bitcoin ETFs, Bitcoin prices surged past $72,000, marking a 60% increase and a record high, with a market capitalization hitting $1.4 trillion.
With the vibrant Crypto secondary market, RootData reported 459 funding events in Q1, a 28.7% YoY increase, with total funding reaching $2.545 billion, a 4.7% YoY increase. Infrastructure, DeFi, and CeFi were the top three sectors by completed funding.
The DeFi experienced over 100% growth YoY and QoQ. The CeFi saw a YoY increase of 217.71%, despite minor QoQ growth of just 1.67%. The DeFi surge is linked to the popularity of RWA and LSD projects. However, infrastructure saw both YoY and QoQ declines, down 24.31% and 5.05% respectively, due to a lack of new narratives and fund managers allocating some funds to the secondary market for short-term gains.
II. Q1 Early-Stage Funding Project Growth by 10.5% YoY, with Unproven Technologies and Solutions.
Examining the funding amounts, mid-to-late-stage funding (>$10M) remained stable YoY, while early-stage investments (<$5M) grew by 16 projects compared to Q1 2023. This suggests the capital market might still be in a valuation correction phase, with many unproven technologies and solutions.
According to RootData, the top five funded projects in 2024 Q1 collectively raised over $400M. EigenLayer completed a $100M round led by a16z Crypto, with restaking being one of the hottest trends in Q1. Its TVL grew by 1100% in Q1, surging from $10 billion to $120 billion. After Ethereum 2.0 transitioned to Proof of Stake (PoS), restaking, as a variant of staking, attracted growing interest from investors and projects.
III. Top 10 Most Active Investors in 2024 Q1 with a 120% QoQ Increase, OKX Ventures Leading with 30 Investments.
Real-time Investors On-chain Holdings: OKX Ventures; HashKey Capital; Delphi Digital; Binance Labs; The Spartan Group
According to RootData, the top ten most active investors in 2024 Q1 participated in 198 investments, up 85% YoY and 120% QoQ. Infrastructure was the most popular sector among the top ten investors, with 96 investments, accounting for 48% of their total Q1 investments. This represents a 300% QoQ increase and a 153% YoY increase.
Interestingly, the top ten active investors made 40 investments in DeFi, with YoY and QoQ growth at 54%, while GameFi recorded a 210% YoY and QoQ increase with 31 investments. In contrast, CeFi and DAO received little attention from the top ten active investors, likely due to compliance challenges, commercialization issues, and smaller funding capacity.
IV. Bitcoin, Solana, and Blast Ecosystem Growth, Developer Community, and Wealth Effect Remain Key Attractions.
Most L1/L2 projects followed a “V”-shaped pattern, with a notable dip in February likely due to the East Asian Lunar New Year holiday, and a peak in March.
Ethereum remained the preferred ecosystem for Crypto projects, with Bitcoin, Solana, and Blast seeing rapid growth. The Bitcoin ecosystem evolved from inscriptions to runes, with a strong narrative. SOL’s 129% growth in the first quarter made it one of the most impressive public blockchains. Blast’s ecosystem saw 20 native projects funded, leading other Layer2 projects.
Some popular L1/L2 ecosystems not included had project counts in single digits, such as ZkSync, StarkNet, Aptos, Sui, and Near. This might be due to niche technology languages, a lack of effective guidance from foundations, or the short duration of mainnet operations.
V. Crypto investors' attention is notably influenced by funding events, secondary market rotations, and project TGE announcements.
RootData’s hot search rankings are based on click-through rates, search volume, and bookmarks, reflecting cryptocurrency project trends over a specific period. This ranking serves as a key reference for gauging project popularity.
Many projects in the hot search rankings attracted significant funding from notable institutions. EigenLayer closed a $100 million Series B round on February 22, marking Q1’s largest single investment, while io.net raised a $1 billion Series A round on March 5.
Strong secondary market performance has turned investor attention toward established public blockchains like Solana and Metis. Newer blockchains like Aptos and Sui have also gained from this shift in market focus.
Project TGE events are key for market attention. StarkNet, Manta, and ZetaChain announced airdrop plans in January.
The rotation of sectors like AI, RWA, LSD, and DePIN has spurred growth in project numbers, as investors search for trending segments.
VI. Trending projects have shown a correlation with secondary markets; public blockchains and DeFi projects being the most searched types.
RootData released 12 editions of the Top20 weekly hot search list in the first quarter, featuring 113 projects. Overall, search volume closely correlated with market trends, driven by narratives, project TGE events, and token price performance.
Public blockchains and DeFi are the most searched asset types. New asset categories like Layer3, modular networks, and restaking protocols have become hotspots in the crypto market.
Among the 12 projects with TGE, RootData’s search popularity correlated with secondary market prices, even showing forward-looking trends with projects like Pyth Network, Manta Network, and Jupiter.
VII. Sam Altman topped the hot search and click-through rankings, highlighting the growing interest in notable figures within Crypto investment circles.
Twelve individuals consistently appeared on the hot search leaderboard in 2024 Q1. Sam Altman, OpenAI CEO and Worldcoin co-founder, had the highest search volume, indicating the high interest in AI. Next on the list was Jack Lu, a partner at NGC Ventures and co-founder of several popular blockchain projects, including BounceBit, Bitune, Bounce, and Chainswap. Balaji Srinivasan, Jia Yaoqi, and Anatoly Yakovenko also remained highly popular.
The “Sam Altman concept” gained market attention and trading opportunities in Q1, reflecting the retail-focused nature of the current Crypto industry. WLD, ARKM, and FET became popular investments. As Crypto matures and attracts mainstream investors, more trading opportunities based on notable figures and events are likely to emerge.
After projects complete TGE events, significant personnel changes often occur. For instance, former LayerZero Strategy Director Irene Wu joined Bain Capital Crypto as a Venture Partner, and zkSync’s former DeFi head, Sebastien, co-founded Sophon, a modular blockchain.
Download Full Report:
EN: Crypto Investment Research Report Q1 2024
VI: Báo cáo đầu tư Web3 Q1 2024
Declaration
This report is produced by RootData Research and the information or opinions expressed herein do not constitute investment strategies or recommendations for anyone. The materials, opinions, and speculations contained in this report only reflect RootData’s judgment on the day of the report’s publication, and past performance should not be used as a basis for future performance. At different times, RootData may issue reports inconsistent with the information, opinions, and speculations contained in this report. RootData does not guarantee that the information contained in this report remains up-to-date, and reliance on the information in this material is at the reader’s discretion. This material is for reference only.
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