TL;DR
- $460 million injected into cryptocurrency startups in January 2024, marking a 13% increase from the previous month.
- The majority of the investment, around $311 million, was directed towards startups focused on developing infrastructure for the crypto market.
- The most notable investment was $100 million secured by HashKey from OKX Ventures to develop a centralized cryptocurrency trading platform.
In January 2024, crypto startups experienced a significant increase in venture capital funding, with a total injection of $460 million. This amount represents a 13% increase compared to the investments from the previous month, according to data from DefiLlama.
The bulk of this investment, around $311 million, was allocated to startups focusing on developing infrastructure for the crypto market. This emphasis on infrastructure reflects the growing need to build the solid foundations necessary for the growth and widespread adoption of cryptocurrencies and blockchain technology.
A standout example of this trend is the $100 million investment secured by HashKey from OKX Ventures. This capital injection is intended to develop a centralized cryptocurrency trading platform.
In addition to infrastructure, decentralized finance (DeFi) startups also attracted significant attention from VC investors in January, with total investments of $47 million. Among these, Kiln, an Ethereum staking platform, stood out with a $17 million investment from 1kx.
OKX: The Holy Grail of Crypto Startups
The gaming sector, particularly projects related to blockchain, also saw an increase in funding, receiving a total of $38.6 million. One of the largest investments in this category was a $15 million contribution to SkyArk Chronicles by Binance Labs, aimed at developing high-quality games.
Web3 applications also caught the eye of investors, with total investments of $27.7 million. Tune.FM, a music streaming service leveraging Web3 technology, received $20 million to enhance its product offerings.
Among the most active VC funds in January were OKX Ventures, Binance Labs, and Borderless Capital. OKX Ventures led the pack by participating in six funding rounds, showing particular interest in staking liquidity and crypto infrastructure. Binance Labs was also notably active, participating in four different rounds and leading three of them. Lastly, Borderless Capital participated in three funding rounds, emphasizing its interest in decentralized data.
