March Sees Crypto Firms Raise Over $1.4 Billion, Marking 18-Month High

• March was the biggest month for the sector’s fundraising since September 2022.
• In March, there were almost 20 investments in the early stages.

March saw the most financing for cryptocurrency firms in 18 months, as a result of a deluge of early-stage investments into crypto and blockchain-related businesses. As per statistics, over $1.4 billion has been invested in cryptocurrency firms. March was the biggest month for the sector’s fundraising since September 2022, when over $2 billion was raised.

An increase in Series A investments, which are considered early-stage investments, contributed to March’s stellar performance, according to John Dantoni, director of research at The Block. In March, there were almost 20 investments in the early stages, a significant increase from February’s nine, which was in line with the monthly average for the previous year, as reported by Dantoni.

Investors Optimistic

Prices have risen in tandem with the growth in industry financing. Bitcoin’s price, which started climbing sharply in early February, finally broke $70,000 this month as per data from CoinMarketCap. This surge has largely been linked to the January 11 approval of spot Bitcoin ETFs in the U.S by the SEC.

Digital assets’ strong price performance left many wondering why venture capital had not seen a comparable upturn. According to Dantoni, this was a legitimate question, but it sprang from a misunderstanding about when contract notifications are made.

There is a typical lag between transaction activity and price performance as most agreements aren’t announced soon after they occur. Typically, venture transactions are finalized a month or more before they are formally publicized. When the total amount invested in crypto and blockchain-related firms topped $90 billion last month, it was a big milestone.

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