Crypto Market Financing Slumps by 26% in First Half Amid Cooling Activity

The crypto market financing in the first half of this year has seen a decrease compared to the same period last year. According to RootData, the total financing amount reached $9.081 billion across 259 financing events. Of this, primary market financing (excluding IPO / Post IPO / M&A rounds) totaled $8.658 billion, a 26.1% decrease year-on-year, with the number of financing events falling by 28.5%. March and May were the two peaks for financing amounts in the first half, with 66 and 68 financing events respectively.

The number of financing events in June dropped to 43, indicating a cooling in market activity as the second quarter drew to a close. Large financing rounds still significantly increase the monthly financing scale, but the enthusiasm for regular financing rounds has begun to contract. In contrast, mergers and acquisitions (M&A) activity mainly focused on CeFi, tools and information services, DeFi, and infrastructure.

Leading crypto VCs are still making frequent investments, with an exchange's Ventures taking the top spot by participating in 25 investments in the first half of this year. Animoca Brands participated in 20 investments, while a16z and Tether each participated in 14. From a sector perspective, DeFi, infrastructure, and CeFi were the three most active areas for financing in the first half.