According to research firm Pitchbook, the total funding for crypto startups this year is expected to surpass investments in 2021. However, the rate of capital deployment is slowing as the desire for private equity investment has been dampened by a string of crypto meltdowns.
Investments in crypto projects attracted $19.9B in venture capital (VC) in the first nine months of 2022. It went up 41% from last year. Last year brought in a record $21.2B in total.
However, the amount of capital deployed has fallen throughout this year. Only $4.0B was invested in the third quarter, the lowest amount since the second quarter of 2021. Moreover, a decline of 38.3% quarter over quarter.
The closure of FTX last month was the most shocking of several significant market participants this year, including Celsius and Voyager, major tokens terraUSD, and Luna, which have shaken investor confidence and destroyed $1.5T in market capitalization for crypto.
According to a Q3 report from Non-Fungible, most players in the industry have had difficulty making money from NFT trading. It had a projected weekly loss volume of $50M. However, the current figures are much better than May’s $250M weekly loss volume anticipated.
Globally, the NFT market has had difficulty posting positive results in Q3, with losses varying depending on the market segment from $1M to $5M per week. In Q3, the global NFT gaming market anticipated losses of $5M to $8M per week.
Despite market circumstances and events, GameFi has grown by over $320M, according to DappRadar’s report. In November, there were more than 800,000 Unique Active Wallets (UAW) daily transactions. According to a recent study, the Japanese NFT market has continued to grow. It anticipates reaching a $1.36B valuation by the end of the year, despite the chaos, fear, and uncertainty that have engulfed the cryptocurrency market since May.
NFTs are infamous for influencing profit and speculation. However, due to community involvement, sound trading practices, and other factors, the asset class has improved in terms of stability in the year’s final quarter.