Venture capitalists (VCs) are pouring back into the crypto space like bees to springtime flowers, with funding surging in the first quarter of 2024. This marks a dramatic shift after two long years of decline.

Data from Crypto Koryo, a crypto analysis platform, reveals a 38% surge in invested funds compared to the previous quarter. This bullish trend extends beyond just the total amount – the number of projects receiving VC funding also jumped by a remarkable 49%. This level of investor enthusiasm hasn't been seen since late 2021.

Get ready for more – Crypto Koryo suggests this positive trend might be the start of a new funding spring for crypto. They point to similarities with the uptick in Q4 2020, which preceded a major influx of VC money into the crypto industry.

This time around, there's a fresh face in the crowd: crypto-focused VCs. Unlike previous periods where traditional banks and non-crypto VCs dominated investments, this quarter saw established crypto players like Andreessen Horowitz Crypto, OKX Ventures, and Multicoin Capital take the lead.

March alone saw a whopping $1.1 billion allocated across 180 crypto projects, reflecting a staggering 52.5% increase in VC funding compared to February. Notably, there's a strong focus on infrastructure and decentralized finance (DeFi) projects.

This newfound optimism follows a slow thaw in Q4 2023. Compared to Q3, there was a modest 2.5% rise in VC investments – the first increase since March 2022, marking a turning point after a year of decline.

Remember the harsh crypto winter of 2022? It seems those frosty days are behind us. Not only is VC funding blossoming, but crypto custody services are also flourishing. Balance, a Canadian digital asset custodian, recently surpassed the $2 billion mark in assets under custody (AUC), reflecting the market's recovery.

Across the sea, Korea Digital Asset (KODA), South Korea's leading crypto custodian, has witnessed a phenomenal 248% growth in crypto assets under its custody during the second half of 2023. This surge, driven by a collaboration between major players like KB Bank and Hashed, propelled the value of their custody holdings to a staggering $6 billion by year's end.

Analysts at Bernstein Research are even more bullish, predicting a mind-blowing surge in crypto funds. They foresee a potential five-fold increase within the next five years, reaching a valuation between $500 billion and a whopping $650 billion.