Cointelegraph Research analyzed all deals and trends from venture capital in the blockchain industry for Q4 2022. , Centralized Finance (CeFi), Non-Fungible Tokens (NFT), Infrastructure, and Web3. In the first half of 2022, he had just under $30 billion invested, but in the second half, he dropped dramatically to $7.3 billion.
As the crypto industry transitions into 2023, Cointelegraph Research has examined data from venture capital databases, including comprehensive details on deals, mergers and acquisition activity, investors, crypto companies, funds, and more. Using this database, Cointelegraph Research crunches the numbers to find the trends that matter most in the industry. Our latest report explores Q4 2022 and how it relates to the big picture from 2018 to 2022.
Download the full report complete with charts and infographics here.
Decrease in investment after April 2022
After the fallout of Terra in the first half of 2022, it seems that the blockchain industry has not been able to attract venture capital back into investing in the industry as it did in 2021 and early 2022. In 2021 he has $30.5 billion invested. And 2022 was on that doubling pace — he until April 2022 when everything started to decline. A brief rebound in capital spending in September was not sustained through the end of the year, putting him below $1 billion in spending over the last three months.
The number of deals also dropped significantly, dropping to just 182 in the fourth quarter. While previous months have always seen him with large deals above $100 million, in the fourth quarter he had only five deals above $100 million. The focus of these 182 deals remained within the Web3 sector, comprising subcategories such as Metaverse, GameFi and Identity, followed by Infrastructure and his DeFi. NFT and CeFi were the least popular in terms of number of deals, but just looking at those numbers can be misleading.
Equal numbers of investments in most and least active sectors
Web3 was the most popular sector in the blockchain industry, with 616 individual transactions, while CeFi was the least popular with 201 transactions. Still, both sectors brought in a total of $9.2 billion in 2022. Web3 averaged $15.4 billion in deals compared to CeFi’s average of $46.6 million. Blockchain and crypto projects in business may need to pay attention to which sector they fall into so they can be better prepared.
This report is Massive Database of Cointelegraph Research Terminals See also analysis by Michael Tabone, senior economist at Cointelegraph Research. Tabone has an extensive background in economics, business, finance, cryptocurrencies, blockchain technology and emerging technologies. He is completing his PhD while working at Cointelegraph Research. Candidates have completed a dissertation focused on the theory and application of DAOs.
Keychain Ventures is a crypto investment firm that invests in various funds in the blockchain space. Keychain Ventures, along with Cointelegraph Research, present quarterly interviews with VC firms, as well as cryptocurrency and blockchain projects that have recently gone through funding rounds. These interviews reveal different perspectives on investment practices from everyone involved.
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