SuperEx丨An Inventory of Crypto Investment Tracks of Crypto Venture Capital Firms in 2024
Institutional investment directions have always been one of the best market indicators (the other being policy guidance). For example, in the stock market, institutional dynamics to some extent determine market trends. As discussed in SuperEx Academy’s lessons on trading volume indicators, volume is the most fundamental and core metric in financial markets. Without trading volume, all price increases and trends are castles in the air, and a significant source of this volume is institutional capital inflows.
As 2024 comes to an end, we see capital flowing steadily into multiple blockchain technology sectors, particularly in Layer 2 scaling solutions, Web3 applications, DeFi ecosystems, and the integration of AI with blockchain.
Through data and case analysis, this article will interpret the latest trends in crypto investment and explore the logic behind capital deployment.
Overview of the 2024 Crypto Investment Market
According to data from crypto investment tracking platforms Crunchbase and Messari, as of Q3 2024, the total venture capital investment in the cryptocurrency sector reached $16.5 billion, marking a 28% increase from 2023. Here are some key trends:
Fewer Deals, Larger Amounts: The total number of investment deals in the first three quarters of 2024 was approximately 987, down 15% year-on-year, but the average size of each deal increased significantly to $16.7 million.
Focus on Mid-to-Late Stage Projects: Early-stage financing dropped from 60% of total deals in 2023 to 47% in 2024, indicating that capital is increasingly inclined toward supporting mature projects with clear business models.
Layer 2: Scaling Technology Continues to Lead the Way
Layer 2 scaling solutions attracted significant investment in 2024. According to The Block Research, Layer 2 projects accounted for over $2 billion in funding in 2024, representing 12% of total venture capital, making it one of the hottest investment directions.
Investment Cases
StarkWare: Completed a $100 million Series C round led by a16z, with funds allocated to further developing ZK Rollup technology and enterprise-grade solutions.
Optimism: Following the release of its new version, user growth surged, prompting Sequoia Capital to invest an additional $50 million in ecosystem development.
Trends Behind the Data
Significant Growth in Trading Volume: Arbitrum and Optimism now account for 35% of Ethereum mainnet’s daily trading volume, demonstrating the strong appeal of Layer 2 technology for high-frequency trading and DApps.
Rich Ecosystem: DeFi protocols and NFT marketplace transaction volumes on Layer 2 chains increased by 42% and 67%, respectively.
Venture Capital Perspectives
Paradigm’s investment manager stated, “We are optimistic about Layer 2 technology because it not only reduces transaction costs but also attracts more Web2 users.”
Web3 Applications: Multi-Scenario Adoption Gains Attention
In 2024, Web3 financing totaled $4.5 billion, with decentralized social networks, creator economies, and gaming emerging as key areas, accounting for 64% of total financing.
Key Investment Areas and Data
Decentralized Social Networks:
Lens Protocol raised $80 million to develop more data sovereignty tools.
User numbers in decentralized social networks grew by 53% in 2024, with monthly active users surpassing 5 million for the first time.
Creator Economy:
Music-related NFT sales increased by 34%. Revenue-sharing protocols like Sound.xyz secured $30 million in Series A funding.
Blockchain Gaming:
Gaming DApps attracted $1.2 billion in investment. Representative projects like Immutable X and Axie Infinity explored collaborations with traditional gaming platforms.
Venture Capital Insights
A Sequoia Capital partner commented, “Web3 applications are transitioning from conceptualization to actualization, especially projects focused on improving user experience, which deserve long-term attention.”
DeFi Ecosystem: Capital Favors Multi-Chain and Structured Products
According to DeFi Llama, the total value locked (TVL) in multi-chain ecosystems surpassed $150 billion in 2024, a 25% increase from 2023, making it a focal point for venture capital.
Capital Inflows
Multi-Chain Interoperability:
LayerZero completed a $120 million Series B round to enhance cross-chain asset transfer capabilities.
TVL for Axelar’s cross-chain liquidity protocol grew by 76%, highlighting strong market demand.
Structured Products:
Ribbon Finance attracted an additional $400 million in institutional capital in 2024, focusing on high-yield automated strategies.
Investment Logic
Venture capital interest in DeFi is centered on technologies addressing liquidity fragmentation and yield optimization products that attract more institutional funds.
Meme Coins and Community Governance: A Tug-of-War Between Speculation and Innovation
Despite the speculative nature of the Meme coin sector, venture capital has not completely ignored it. According to Dune Analytics, Meme coin-related projects raised $500 million in 2024, mainly targeting community-driven and ecosystem innovation.
Case Analysis
Pepe 2.0: Introduced an ecosystem development fund via community voting, securing $25 million in funding.
Shiba Inu: Raised $30 million for its metaverse-linked virtual land project.
Future Outlook
Venture capital firms emphasized, “If Meme coins can further integrate with DeFi and NFTs, they will no longer be merely synonymous with market sentiment.”
AI and Blockchain: Innovative Fusion Drives New Trends
In 2024, the integration of AI and blockchain became a new investment highlight, with total funding reaching $3.5 billion, a 70% year-on-year increase.
Key Data and Cases
AI-Powered On-Chain Analysis:
The Graph received $50 million to develop AI modules that improve on-chain data query efficiency.
Smart Contract Optimization:
OpenZeppelin raised $30 million for AI auditing tools, significantly enhancing smart contract security.
Venture Capital Logic
Venture capitalists widely believe that AI integration not only lowers technical barriers but also paves the way for blockchain’s practical applications.
Summary
Data and cases clearly illustrate the increasingly rational investment landscape of 2024:
Technology-Driven: Layer 2 and AI-blockchain integration are key investment priorities.
Utility-Oriented: Web3 applications and DeFi projects are moving away from concepts toward practical adoption.
Ecosystem Synergy: Multi-chain and cross-chain technologies are crucial to solving industry pain points and are a primary focus for venture capital.
In 2024, the layout of crypto venture capital firms reflects a more rational market trend. Capital is no longer blindly chasing hot topics but instead emphasizes the long-term potential and technological value of projects.
