Original | Odaily Planet Daily
Author | How to be a husband
In the second quarter of 2024, the first small peak of the bull market has passed.
At the macro level, the Federal Reserve has still not released a clear signal of interest rate cuts, and the US election is always affecting the future direction of the crypto market; the US SEC approved the 19 b-4 document at the end of May, but the S-1 document has not been approved yet, and the markets enthusiasm for Ethereum spot ETFs is slowly declining.
From the perspective of the crypto market, there is still no internal driving force to drive the industry further development, but the era of hairballing may come to an end with the Layerzero airdrop world. When the wealth effect of hairballing decreases, it will be worth looking forward to what new customer acquisition methods will be born in the future.
Under the influence of comprehensive factors, the performance of the primary market has not changed much compared with the previous quarter. The investment and financing in Q2 has slightly decreased in quantity, but in terms of amount, the total investment value is slightly higher than the previous quarter.
Looking back at Q2 primary market investment and financing activities, Odaily Planet Daily found that:
● The financing situation in the crypto market remains stable. Compared with the previous cycle, the first small peak of the bull market has passed;
● There were 370 financings in Q2, with a total disclosed financing amount of US$2.416 billion;
● DePIN and GameFi are the hottest financing sectors in the quarter;
● The largest single investment amount was $225 million for Monad .
Note: Odaily Planet Daily divides all projects that disclosed financing in Q1 (the actual close time is often earlier than the news release) into five major tracks based on the business type, service object, business model and other dimensions of each project: infrastructure, application, technology service provider, financial service provider and other service providers. Each track is divided into different sub-sectors including GameFi, DeFi, NFT, payment, wallet, DAO, Layer 1, cross-chain and others.
The financing situation in the crypto market remains stable. Compared with the previous cycle, the first peak of the bull market has passed.
In the last quarters report , the view was that the last quarter marked the early to mid-term of the bull market. Combining the analysis of the crypto market, we believe that the first small peak of the bull market has passed.
Although the number and amount of financing in the primary market are not much different from the previous quarter, the primary market has a certain lag. Except for judging the initial stage of the previous bull market compared with the previous quarter, it is difficult to accurately feedback the subsequent development of the primary market.
The number of financings in Q2 was 370, with a total disclosed financing amount of US$2.416 billion
According to incomplete statistics from Odaily Planet Daily, from April to June 2024, there were 370 investment and financing events in the global crypto market (excluding fund raising and mergers and acquisitions), with a total disclosed amount of US$2.416 billion, distributed in infrastructure, technology service providers, financial service providers, applications and other service providers. Among them, the application track obtained the largest amount and number of financing, approximately US$980 million and 204 transactions respectively; the infrastructure track followed closely behind, with a financing amount of US$855 million and 120 transactions.
From the above figure, we can see that the number and amount of financing in each track are basically the same as the proportion of the previous quarter. Due to the single investment in some star projects, there is a small increase in the amount. However, compared with the previous bull market, the number has decreased significantly. The reason is that there are currently no emerging sectors in the crypto market with transformative sectors or asset issuance methods. So far, Inscription Runes have not withstood the test of the market.
DePIN and GameFi became the hot financing sectors last quarter
According to incomplete statistics from Odaily Planet Daily, financing events in the Q4 segmented tracks were concentrated in DeFi, underlying infrastructure and GameFi, accounting for nearly half of the total financing events, including 88 transactions in the DeFi track, 61 transactions in the underlying infrastructure track, and 52 transactions in the GameFi track.
From the distribution of financing amount in sub-tracks:
DePIN and AI are calculated separately due to their high popularity. Almost most institutions have invested in related projects. This phenomenon started last year and has continued to this day. For the crypto market, the focus of investment and financing in the primary market will lag for a period of time according to the difficulty of project development. From this, it can be inferred that in the second half of this year or next year, AI and DePIN-related projects will grow when the secondary market explodes. Everyone can plan ahead to get to know the high-quality projects in the two sectors first.
In addition, according to the above figure, it can be found that some sectors have an unbalanced ratio of amount and quantity. This is because the investment and financing amount of well-known projects in a single sector is too high. Such projects will be listed separately in subsequent projects.
Finally, the financing news of the GameFi track has dominated the top three for a long time in recent quarters, but there are no high-quality projects in the secondary market of the GameFi sector. Instead, Telegram mini-games are quite popular, such as Hamster Quick Fight and other tap to earn projects. However, from the investment and financing projects this quarter, Telegram-related projects have not received the favor of most capital. For the specific follow-up progress of GameFi, you can pay attention to the weekly chain game report released by Odaily Planet Daily every week.
The largest single investment amount was $225 million for Monad
Among the top 10 projects, it is worth noting that three of them with over 100 million yuan in financing were led by Paradigm. According to the report A review of the performance and investment philosophy of 20 active investment institutions in the first half of 2024 , Paradigm only made 7 investments in the first half of 2014. In addition, given Paradigms position in the VC capital of the crypto industry, these three projects can be focused on, namely Monad, Farcaster and Babylon.
Securitize, led by BlackRock, can be regarded as one of its representatives in the crypto industry, especially the Build fund jointly invested by the two, which provides a new underlying asset method for on-chain RWA projects.
