Crypto projects raise $30.2 billion in H1 2022, surpassing total raised in all of 2021
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(Kitco News) – A recent report released by crypto market intelligence firm Messari shows that institutional interest in the cryptocurrency ecosystem remains strong despite the poor performance of the crypto market in the first half of 2022.
According to Messari, while $1.2 trillion worth of assets disappeared from the crypto market cap, a total of $30.3 billion was raised over 1,199 fundraising rounds led by Centralized Finance (CeFi) projects with $10.2 billion in raised funds.
A look back at the fundraising statistics for 2021 shows that a total of $30.2 billion was raised from 1,313 funding rounds, meaning that 2022 surpassed this total in just six months.
Some key takeaways from the H1 2022 Crypto Fundraising Report from @MessariCrypto (via the new acquisition @dovemetrics)
The biggest highlight–> Despite the bear market, more was invested in H1 2022 than all of 2021. Over $30B! pic.twitter.com/b3oDNouQuF
— Dunleavy (@dunleavy89) 2 August 2022
Other popular sectors for investment include infrastructure projects, which raised $9.7 billion, and the nonfungible token (NFT) sector, which brought in $8.6 billion.
The decentralized finance (DeFi) sector of the crypto market was one of the driving forces in the early 2021 bull run; however, interest began to wane in the second half of the year following a series of hacks and exploits. Evidence of the sector’s diminished status can be seen in the fact that DeFi projects only managed to raise $1.8 billion in H1 2022.
Crypto exchanges attract investors
A deeper dive into the details of each sector shows that crypto exchanges were the most popular form of investment, amassing $3.2 billion in capital.
This fact puts the ecosystem at an interesting crossroads after it was revealed on Friday that every US-based cryptocurrency exchange, along with Binance, is currently under investigation by the Securities Exchange Commission (SEC).
Gaming-related NFT projects captured the vast majority of funds raised in the Web3 and NFT sectors, raising more than four times as much as the marketplace, art, DeFi NFTs and infrastructure verticals.
While the Web3 sector underperformed several of the other sectors covered in the report in terms of fundraising, it remains one of the most promising growth areas in the crypto ecosystem as well-known global brands such as Starbucks increasingly engage with the Metaverse and Web3.
TR3NDING: Starbucks plans to unveil its web3-based rewards programs next month — including coffee-themed NFTS
— The Metaverse (@themetav3rse) 4 August 2022
A final piece of evidence that interest in crypto investing remains high among large funds is shown in the following graphic, which shows that crypto-focused funds contributed a total of $25.9 billion in fundraising activity while traditional funds invested $10 billion.
H1 2022 funds fundraising activity. Source: Messari
According to the June PWC hedge fund report, the share of hedge funds investing in digital assets has risen from 21% in 2021 to a current participation rate of 38%.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not an invitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept responsibility for any loss and/or damage arising from the use of this publication.
