The crypto market is back with a vengeance! After a chilly period, fundraising in the first quarter of 2024 has exploded to a staggering $2.4 billion, fueled by a positive shift in market sentiment and a fresh wave of investment.

This surge is a breath of fresh air, according to a recent analysis by PitchBook, a big name in data for investors. Compared to the previous quarter, cryptocurrency investment activity has seen a dramatic increase.

Get this: the first quarter's bull run was a major driver of this investment boom. Cryptocurrency values skyrocketed to highs not seen in months, attracting institutional investors with bulging pockets. The cherry on top? The SEC finally approved spot Bitcoin ETFs, further legitimizing the market.

Venture capitalists weren't going to miss out on this party. The PitchBook report reveals a whopping 518 deals closed in the cryptocurrency industry during Q1, totaling a cool $2.3 billion. That's a massive 40.3% increase compared to the previous quarter! This growth builds on the strong on-chain activity witnessed in late 2023, marking a significant leap forward for the crypto space.

The number of transactions (deal volume) also jumped a notable 44.7%. As asset values climbed, market valuations soared throughout the year, creating a prime environment for investment. PitchBook's experts predict this growth trend to hold steady for the rest of the year.

Several companies are shining examples of this fundraising success. Zama, a crypto firm specializing in fancy encryption (FHE), secured a cool $73 million. EigenLayer, another player in the game, raked in a hefty $100 million in Series B funding. But the real champion of the quarter was Together AI. They shattered fundraising records with a monstrous $106 million haul, propelling their valuation to a staggering $1.1 billion.

As more big institutions jump into the crypto arena, a wave of deals is pushing valuations for various companies even higher.

VC Funding on a Roll: Two Months Strong

Hold onto your hats! Crypto venture capital funding has surpassed the $1 billion mark for two months running, highlighting investors' continued enthusiasm for the industry. April saw $1.02 billion spread across 161 investments, down slightly from March's $1.09 billion across 186 rounds. Regardless, this marks the first time since late 2022 that crypto has enjoyed two consecutive months of billion-dollar-plus funding.

Earlier this year, Balance, a Canadian digital asset custodian, revealed it had once again hit $2 billion in assets under custody (AUC) thanks to the crypto market's comeback. Similarly, Korea Digital Asset (KODA), South Korea's custody king, has witnessed a phenomenal rise in crypto assets under its care. Just recently, the company revealed a near 248% increase in the value of these assets during the second half of 2023.