Thanks to a surge of early-stage investments in blockchain-related ventures throughout March, funding for crypto companies has soared to its highest level in 18 months.

According to data from The Block Deals Dashboard, new funding for crypto companies exceeded $1.4 billion in total, marking March as the most lucrative month since September 2022 when the sector garnered over $2 billion in funding.

March's exceptional performance can be attributed in part to a notable increase in early-stage, or Series A, investments, as highlighted by John Dantoni, The Block's Research Director. With over 20 early-stage investments recorded during the month, there has been a significant leap compared to February, which saw only nine such investments, aligning closely with the monthly average over the past year.

This upsurge in funding coincides with a rally in cryptocurrency prices, particularly Bitcoin, which surged past $70,000 for the first time ever this month.

Dantoni addressed the misconception surrounding the timing of deal announcements, emphasizing that most deals are not disclosed immediately after they occur, leading to a delay between deal activity and price performance. Venture deals often conclude one to two months, or sometimes longer, before being officially announced.

David Garcia, co-founder and managing partner of Borderless Capital, provided a straightforward explanation for the increase in new deals, attributing it to the availability of more capital. Borderless Capital recently co-led a $15 million investment in the DePIN Layer 1 blockchain project, underscoring the influx of funds into the sector.

According to Dantoni, March's surge in deal activity represents a reliable indicator of the robustness of VC activity in the market. Deal activity has experienced a consistent uptick for three consecutive months, with venture funding witnessing an approximate 64% increase month over month.

Token sales played a significant role in March's fundraising efforts, with Monad Labs and Optimism raising substantial amounts through token deals categorized as "infrastructure" deals.

The total dollar amount invested in crypto and blockchain-related companies reached a significant milestone last month, surpassing $90 billion. The Block Research has been meticulously tracking crypto investments since 2017.

Looking ahead, more capital is expected to flow into crypto projects through venture capitalists. For instance, notable investors like Marc Andreessen, Accolade Partners, and Galaxy Digital recently participated in the latest fund round of crypto VC firm 1kx, which raised $75 million. 1kx focuses on consumer-targeted crypto applications and has made strategic investments in various projects, including Kiln, Pudgy Penguins, Rarible, and The Sandbox.