In the first quarter of 2024, the cryptocurrency sector experienced a significant resurgence in venture capital (VC) funding, indicating an end to the stark downturn that began in 2022, known as the crypto winter.
This upturn, the first of its kind since early 2023, signals a potential shift in investor sentiment toward optimism after a prolonged bear market period.
Data from "The 2024 Crypto Spring Report" by Chainalysis highlights this positive change, showing a quarter-over-quarter increase in investment within the sector for the first time in a year.
The previous year, 2023, witnessed a dramatic drop in funding for cryptocurrency companies, following a peak in investment that neared the $10 billion mark in the fourth quarter of 2022.
Investments then plunged to below $2 billion in the second quarter of 2023, underscoring the severity of the investment freeze during the crypto winter.