- Venture funding in the blockchain sector took a hit.It suffered a decline of 22% from $12.5 billion to $9.8 billion.
- The impact of crypto winter is beginning to reflect in private funding after seven consecutive quarters of growth.
- Meanwhile every sub sector has also experienced a dip in funding.
The venture funding in the blockchain sector dropped by a whopping 22% from $12.5 billion to $9.8 billion. For the first time in two years.
As per the latest reports from The Block Research, the deteriorating effects of crypto winter are starting to show after seven consecutive quarters of growth is starting to show in private funding.
Fed-induced crypto winter has resulted in heavy turmoil in the crypto sector. Almost all cryptocurrencies have suffered decline in their value. Prominent crypto platforms too suffered heavily. Three Arrows capital that had assets worth billions of dollars went bankrupt.
The report also reveals that the total number of deals increased to 694 in Q2 from 648 in Q1. June had a particularly slow growth. It suffered a decline of approx. 21%, from 247 to 196 month over month.
Private funding in the blockchain sector indicates the condition of the sector. Due to the time lapse between the announcement of the deals till the time they become official. This points towards the fact that venture funding will now constantly decrease. As economic factors such as increasing inflation and the latest liquidity crisis begin to form the sector.
The report also mentions that every sub sector has suffered a decrease in funding. Excluding data and analytics enterprises.
The number of deals under $50 million have decreased exponentially. This quarter the funding roughly amounts to $9.8 billion. Raises smaller than $50 million are around 44% in comparison to 29% in Q1 2022.
Source: https://www.thecoinrepublic.com/2022/07/15/q2-witness-heavy-decline-in-blockchain-venture-funding/