Harsh bear season lowers crypto investments: 2023 eats the difference

Crypto investors, who had great expectations in 2022 after the records in 2021, did not put their hands in their pockets in 2023 after the year that started with the Russia-Ukraine war and continued with the Terra LUNA and FTX crisis!

It didn’t even come close to 2022…

In 2023, investment companies invested $10.7 billion in crypto and blockchain startups. However, this amount fell far short of the $33.3 billion level in 2022. While most of the investments were made in the first half of the year, 2023 managed to surpass the other bear seasons.

More than 2019 and 2020 combined!

Although investments in crypto-based companies have fallen sharply in 2023, it has not gone unnoticed that the figure has almost outpaced previous bear seasons. Investments, which were over $10 billion in 2023, also exceeded the sum of 2019 and 2020. The figure was $3.1 billion in 2019 and $3.2 billion in 2020. After the great bull season in 2017, $8.1 billion was invested in this area in 2018. The amount of investment in 2021 exceeded 29 billion dollars.

There was also a decrease in the number of deals made. While there were 2671 crypto-VC deals in 2022, this number dropped by 32% to 1819 in 2023.

On the other hand, the majority of crypto startup investments in 2023 came to the NFT and gaming categories. Infrastructure and Web3 were also important areas of interest.

The expected price increases in 2024 may significantly increase the investments of venture capital companies.

Published: December 26, 2023 11:00Last Updated: December 26, 2023 11:04