CryptoRank recently released a report detailing the state of venture capital funding in the cryptocurrency industry during the first quarter. Analysts observed a cautious approach from investors, noting a disparity between Bitcoin’s price and the number of funding rounds. In the first three months of the year, there were a total of 422 funding rounds amounting to $2.3 billion.

The report highlights a trend where venture funds are exercising greater caution and selectivity in their crypto investments. Most deals ranged from $1 million to $10 million, with only six projects attracting over $50 million. This indicates a more restrained level of investment activity compared to historical data over the past four years.

Investor focus in the last quarter was primarily on protocol changes, interoperability levels, and decentralized exchanges (DEXs). Notably, protocols like EigenLayer and Ether.fi received significant investments of $100 million and $27 million, respectively.

Crypto investors remain cautiously optimistic, with the trajectory of fundraising growth in the industry remaining uncertain. CryptoRank suggests that the sustainability and resilience of the current market rally are still speculative and subject to observation.

Since the start of the year, the total capital inflow into crypto funds has reached a record high of $13.8 billion. This surpasses the previous record set in 2021 when $10.6 billion flowed into cryptocurrency-focused products, according to CoinShares analysts.

For more insights on VC crypto investments and the latest market trends, continue exploring news on Global Crypto News.

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