In the first quarter of this year, a total of 518 deals amounting to $2.3 billion were successfully closed, as stated in the report. According to the report, there was a significant increase of 40.3% in investments compared to the previous quarter. This surge in investment activity in the cryptocurrency market can be attributed to a change in market sentiment and fresh capital inflows. A recent analysis by PitchBook reveals that the cryptocurrency sector experienced a substantial rise in investment numbers quarter-on-quarter.
The primary catalyst for this increase in investment was the bull market in Q1, which witnessed cryptocurrency values reaching levels not seen in months. The approval of spot Bitcoin ETFs by the SEC led to a surge of institutional investors pouring money into the cryptocurrency market. With the price of Bitcoin reaching a new all-time high of around $73,000, investors were drawn to the market. Additionally, there was an increase in venture capital funds actively participating in this bull run.
The report highlights that within the industry, a total of 518 deals worth $2.3 billion were closed in the first quarter of this year. This represents a significant increase of 40.3% compared to the previous quarter. Considering the heightened on-chain activities observed in Q4 2023, this jump forward is remarkable. In the previous quarter, there was a 44.7% rise in deal volume or transaction number. The increase in asset values has led to high market valuations this year. The experts at PitchBook predict a continued rise in investment activity throughout the year.
According to the report, Zama, a crypto firm specializing in fully homomorphic encryption (FHE), secured $73 million in fundraising. EigenLayer, on the other hand, received $100 million in Series B funding. However, the biggest deal of the quarter was secured by Together AI, which raised $106 million, thereby increasing its valuation to $1.1 billion. As more institutions began to participate in the cryptocurrency sector, numerous deals resulted in rising valuations for various companies.
In other crypto news today, the price of Solana has experienced an upsurge, reaching a five-week high.