Crypto News

DeFi Lending Attracts VC Backing Despite Sharp Drop in Crypto Fundraising

Despite heavy losses in VC funding across the crypto sector at large, DeFi lending firms saw a more than 50% increase in fundraising during April.

A report published by venture capital research firm, Ana.vc, has revealed a 57% decline in crypto funding from VCs over the month of April.

Despite the decline in overall investment, the decentralized lending sector appears to still be flourishing — raising 150% of its March total.

Crypto fundraising plummets during April

The report excludes Bakkt’s raise, identifying 32 disclosed deals valued at nearly $50 million in total, down from $117 million last month.

“Crypto winter isn’t over and is not entirely immune to macro economic trends as [the] majority of the deals are done in equity,” the report asserts.

Ava.vc found that decentralized finance and fintech, or DeFi, continues to dominate overall funding, garnering almost 40% of the monthly total raised by the crypto sector for the second consecutive month.

The second-largest segment of the crypto sector by total raise was firms building blockchain infrastructure with 12.9%, followed by enterprise with 9.7%, and marketplace with 6.5%.

Investment activity increases around DeFi lending

While most sectors within crypto saw heavy losses in overall fundraising during April, DeFi lending startups saw a 56% increase capital raised — up to $4.84 million from $3.1 million in March.

The gain in equity deals despite the total raised across the DeFi sector falling nearly 60% from $46.21 million to $19.35 million.

Within DeFi, Payment firms were the hardest hit in terms of percentage — falling from 82.6% from $9.24 million in March to $1.61 million.

However, exchanges saw the largest total drop in fundraising, falling from the largest DeFi segment with $12.34 million to just 3.23% — a drop of 73.8%.

Despite media hype, blockchain games close no deals in April

Nearly half of the fundraising took place in the United States, with over 80% of deals closing in the U.S., U.K., and Europe.

The report notes that despite significant hype surrounding blockchain-based gaming platforms from crypto media, no blockchain gaming companies were able to close funding deals during April.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of CoinChapter and CoinChapter does not assume any responsibility or liability for the same.

(This story has not been edited by CoinChapter staff and is auto-generated from a syndicated feed.)
0 Comments
Inline Feedbacks
View all comments
CoinChapter

Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.

Related Crypto News

66 Million XRP(Ripple) Moved On Coinbase And Kraken
Over the past 24 hours there has been 66 million XRP transferred on two major crypto exchanges. Whale Alert...
Bitfinex Launches New Cryptocurrency Payment System
Cryptocurrency trading platform Bitfinex has launched a new payment system known as Bitfinex Pay. The service aims to help...
Ethereum Price Outlook: Inverse H&S Hints Breakout Towards $1,900
Ethereum (ETH/USD) is forming a bullish pattern that could push its market bids towards $1,900. Key Ethereum Takeaways Ethereum...
JPMorgan Tests Blockchain Technology In Space
JPMorgan recently tested blockchain technology between satellites orbiting the earth. This proved that digital devices could use the technology...
Oracle Wants To Make Blockchain, Crypto More Mainstream
Oracle is the latest company to take advantage of the benefits blockchain technology has to offer. It plans to create a...
PayPal Reportedly Buying Cryptocurrency Custody Firm Curv
PayPal reportedly is set to acquire cryptocurrency custody firm Curv. With price estimates ranging between $200 to $500 million....

Featured Crypto News

66 Million XRP(Ripple) Moved On Coinbase And Kraken
Over the past 24 hours there has been 66 million XRP transferred on two major crypto exchanges. Whale Alert...
Bitfinex Launches New Cryptocurrency Payment System
Cryptocurrency trading platform Bitfinex has launched a new payment system known as Bitfinex Pay. The service aims to help...
Ethereum Price Outlook: Inverse H&S Hints Breakout Towards $1,900
Ethereum (ETH/USD) is forming a bullish pattern that could push its market bids towards $1,900. Key Ethereum Takeaways Ethereum...
JPMorgan Tests Blockchain Technology In Space
JPMorgan recently tested blockchain technology between satellites orbiting the earth. This proved that digital devices could use the technology...
Oracle Wants To Make Blockchain, Crypto More Mainstream
Oracle is the latest company to take advantage of the benefits blockchain technology has to offer. It plans to create a...
PayPal Reportedly Buying Cryptocurrency Custody Firm Curv
PayPal reportedly is set to acquire cryptocurrency custody firm Curv. With price estimates ranging between $200 to $500 million....