The amount of funds raised by cryptocurrency firms dropped to a three-year low of US$2.1 billion in the third quarter of 2023, according to a new report published by on-chain intelligence firm Messari.

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Fast Facts

  • Most investments were focused on early-stage funding rounds, with seed funding accounting for a total of US$488 million raised over 98 rounds.
  • Series B and later-stage investments fell to a 1.4% deal share in Q3, down from 8% in Q4 2020.
  • “This is indicative of strategic bear market positioning as investors attempt to fund projects with asymmetric upside that can return greater multiples when market sentiment eventually shifts in a positive direction,” Messari said in its report.
  • The global crypto market capitalization is down 63% from its all-time high of US$3 trillion in November 2021.
  • The bear market has caused financial difficulties for several notable crypto companies, such as New York-based crypto intelligence firm Chainalysis, which reportedly cut 150 employees this week.

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