Binance has identified promising crypto areas

Cryptocurrency exchange Binance published report on venture investments in the digital asset industry and named the areas that attracted the most funds, reports RBC Crypto.

Number and volume of investments in Web3 startups. Source: Binance

According to the report, despite the prolonged bear market that prevailed throughout 2023, venture capital funds continued to invest in projects from the cryptocurrency industry. Projects related to Web3 games attracted the most funds. Over the past four quarters, investors have invested $645.6 million in this area. Other popular areas among venture capital funds include projects related to payments and trading platforms.

The most active funds in terms of the number of transactions were Coinbase Ventures, HashKey Capital, Shima Capital, Polygon Ventures and DWF Labs. Coinbase Ventures has directed a third of its investments into companies in the field of decentralized finance (DeFi) and almost 40% into infrastructure projects.

Over the past four quarters, six unicorn projects (with valuations above $1 billion) have attracted investment. Among them were the Ramp payment service with an estimate of $5.8 billion, the Copper infrastructure project and the LayerZero protocol with estimates of $3 billion each.

At the end of October, it became known that the Andreessen Horowitz (a16z) venture fund plans to invest $3.4 billion in early-stage projects, including crypto startups. The company plans to begin raising funds for investments at the end of this year and hopes to close all transactions in the first half of 2024.

In July of this year, K33 Research published report, which revealed that venture capital funding for the Web3 segment fell sharply in the first quarter of 2023, showing an 80% drop compared to the same period last year.

By data Cryptorank service, for the nine months of 2023, venture investments in crypto startups amounted to $6.75 billion, which is 82% less than last year’s figure for the same period.