Web3 Venture Funding Experiences a Serious Decline
The Web3 sector has seen a recent resurgence, with various tokens recovering from a bearish winter in 2022.
Despite this, venture capitalists are showing little interest in investing in the crypto industry.
The $1.7 billion invested in the first quarter of 2023 is the lowest since Q4 2020 when web3 was in its early stages.
This decline is attributed to the events of the second half of 2022, including the collapse of Terra Luna and FTX, which led to second thoughts from investors.
As a result, the number of funding rounds has decreased, and only three financing rounds exceeded $100 million in the past quarter, compared to 29 a year ago.
However, these events should not be viewed negatively, as they have exposed some bad actors in the crypto ecosystem and highlighted the need for solid use cases. It is expected that the web3 industry will emerge stronger despite the current funding decline.
The leading coin, Bitcoin, has recovered and hit $30,000 in Q1, although it is currently trading at around $27,590, down 9% in the past seven days.