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In September, venture capital firms invested a total of $659 million in crypto startups, representing a 3% increase from August.
Key Notes
The blockchain gaming sector stood out, attracting $63 million, a 32% growth compared to the previous month.Notable investments included Celestia's $100 million strategic funding round and Huma Finance's $38 million raise.Despite the overall positive trends, funding for DeFi startups dropped significantly in September, totaling $58 million.As per the recent details, venture capital firms have poured a total of $659 million into crypto startups during the last month of September, marking a 3% increase in comparison to August, as per the data from DeFiLlama. One of the dominating sectors for VC funding was the blockchain gaming sector which attracted massive funds for the second consecutive month. As per the reports, VC firms poured a total of $63 million in blockchain titles, thereby registering a 32% monthly growth.
Within the sector, Balance Games attracted more than 50% of the money coming to blockchain gaming startups. This project alone received $30 million in inflows from players such as a16z, Animoca Brands, DWF Labs, and Aptos Labs, with the goal of combining artificial intelligence and blockchain into more enjoyable user experiences.
After gaming, projects building blockchain infrastructure secured a total of $457 million in funds during September. Thus, they dominated 71.5% of the funds secured by the whole crypto ecosystem last month.
Celestia TIA $5.14 24h volatility: 6.6% Market cap: $1.10 B Vol. 24h: $182.77 M secured $100 million in a strategic funding round, marking the largest investment to date for infrastructure startups. The funding round was led by Bain Capital Crypto, with additional contributions from 1kx, Robot Ventures, Syncracy Capital, and Placeholder.
In another significant development, Huma Finance raised $38 million to advance its blockchain-based payment network. This funding round attracted participation from Fenbushi Capital, HashKey Capital, and ParaFi Capital.
VC Funding in DeFi Is on a Decline
As it turns out, the VC funding in the DeFi space has also been on a decline despite the stability in the blockchain infrastructure-related developments. During the month of September, the DeFi ecosystem startup received $58 million, registering a drop of 55% from the previous month of August.
Drift topped the DeFi funding landscape by raising $25 million in a Series B round led by Multicoin Capital. Following closely, Puffpaw, a “vape-to-earn” application built on Berachain, secured the second-largest investment round among DeFi startups.
In addition, Web3 adoption saw a significant boost last month, with $59 million invested in startups creating blockchain-based alternatives to traditional services.
Last month in September, Bitcoin and the broader crypto market staged a strong recovery with BTC BTC $61 321 24h volatility: 1.0% Market cap: $1.21 T Vol. 24h: $33.44 B price ending with 8% gains. Apart from this, the inflows into spot Bitcoin ETFs also picked up after mid-September following the Fed rate cuts.
This shows that there’s been a renewed interest in the crypto market as liquidity infusion can lead to more capital flowing into quality crypto projects.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
