A new report from Messari, a company that tracks the cryptocurrency market, says that institutional interest in the cryptocurrency ecosystem is still high, even though the cryptocurrency market did not do well in the first half of 2022.
Messari says that while $1.2 trillion was being taken out of the crypto market cap, $30.3 billion was raised through 1199 fundraising rounds. Centralized Finance (CeFi) projects raised the most money, with $10.2 billion.
When we look back at how money was raised in 2021, we see that $30.2 billion was raised through 1313 investment rounds. This means that the amount raised in 2022 was more than that in only six months.
Infrastructure projects, which brought in $9.7 billion, and the nonfungible token (NFT) sector, which brought in $8.6 billion, are also popular places to invest.
Early on in the bull run of 2021, the decentralized finance (DeFi) sector of the cryptocurrency market was a major driver. However, after a series of hacks and exploits, interest began to wane in the second half of the year. The decline of the sector is shown by the fact that DeFi projects only raised $1.8 billion in the first half of 2022.
When you look more closely at each sector, you can see that crypto exchanges were the most popular way to invest, bringing in $3.2 billion.
The Securities and Exchange Commission said on Friday that every U.S.-based cryptocurrency exchange, including Binance, is being looked into. This puts the ecosystem at an interesting crossroads (SEC).
More than four times as much money was raised for NFT projects related to gaming as for projects in the marketplace, art, DeFi NFTs, and infrastructure verticals all together.
Even though the Web3 sector didn’t raise as much money as some of the other sectors in the report, it is still one of the most promising areas for growth in the crypto ecosystem, especially as well-known brands like Starbucks get more involved with the Metaverse and Web3.
The graph below shows that crypto-focused funds raised a total of $25.9 billion, while traditional funds put in only $10 billion. This is more proof that big funds are still interested in investing in crypto.
A PWC hedge fund report from June says that the number of hedge funds investing in digital assets has gone up from