In 2023, the crypto firms raised around $6.25 billion in funding. The funds raised by crypto firms have drastically declined compared to 2022’s approximate raise of $22 billion.
Indeed, the market recovered in 2023, with Bitcoin rallying more than 150%. However, the crypto market was greatly impacted by last year’s collapse of big firms such as Terraform Labs, FTX, and others.
Hence, the Venture Capitalist (VC) interest in the crypto industry declined in 2023. Meanwhile, Artificial Intelligence (AI) was the talk of the town.
Did AI Hype Cause Crypto Fundings to Decline by Over 70% in 2023?
The screenshot below from DefiLlama shows that the crypto funding drastically declined in 2023. Last year, the crypto companies raised around $22 billion, with the highest funding of $3.677 billion in March 2022.
However, in 2023, the total funds raised are approximately $6.25 billion. That’s a whopping decline of over 70% compared to 2022. February 2023 recorded the highest funding of around $877 million.
Meanwhile, Artificial Intelligence companies received significant funding in 2023. This is because the advent of AI chatbots such as ChatGPT and Bard attracted investors’ interest.
Do you have anything to say about the crypto funding in 2023 or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on Facebook X (Twitter)
