After a historic year 2021, the financial year 2022 presented itself in the best aegis for the cryptocurrency ecosystem. But a cascade of scandals, a cryptocrash and a bear market sustained has rattled the sector, which has seen investors turn away in the quarters. Ultimately, although startups in the sector have captured more than $30 billion in investment from venture capital funds in 2022, a level similar to 2021 ($31 billion), the coming year was ultimately marked by a descent into hell in the first quarter. was over.
In the first three months of the year, when all the lights were still green, money flowed, as evidenced by the roughly $13 billion raised in roughly 1,100 transactions. One of the most significant was being credited to Yuga Labs, which originated from the NFT Bored Ape Yacht Club collection (10,000 unique drawings with the figure of humanized signs), with a fundraising of $450 million. But after this promising start, the climate quickly deteriorated.
A year ended with the weakest quarter in two years
Thus, the second quarter of May was marked by the crash of the stablecoin Terra, which caused the bankruptcy of the Three Arrow Capital fund and platforms such as Celsius Network and BlockFi. This earthquake caused investors to lose $40 billion and saw more than $500 billion evaporate in just one week from the cryptocurrency market.
In the turmoil, startups in the ecosystem raised less than $10 billion between April and June. During the second half of the year, this collapse worsened, with investments reaching $2.7 billion in the fourth quarter, when only 366 transactions were recorded; that’s down more than 50% from the third quarter, when $6 billion was raised in 676 deals.
The last quarter of 2022 even recorded the lowest number of transactions and invested capital in the last two years. In this context, the year 2023 promises to be particularly difficult for crypto start-ups engaged in a desperate search for funding to ensure their development.