The fall in the value of digital currencies in 2022 had a negative impact on the investment attractiveness of blockchain projects.
In the middle of last year, Bloomberg reported that venture capital investment in the industry had fallen to its lowest level since 2021.
BlockData analysts found that in the fourth quarter of 2022, investments in digital currencies and blockchain projects fell by 34% compared to the third quarter.
Compared to the first and second quarters, venture funding decreased by 67% and 53%, respectively.
The collapse of the Terra ecosystem in May and the subsequent bankruptcy of crypto companies became the main triggers that provoked a weakening of the investment attractiveness of the industry.
The crisis around the FTX exchange in November also led to an outflow of venture capital from the cryptosphere, the researchers emphasized.
In monetary terms, project funding totaled just $3.7 billion in the fourth quarter, while the industry raised $9.6 billion in investment in the fourth quarter of 2021.
In annual terms, the total amount of funding for blockchain startups and projects fell by 11% from $32 billion to $29 billion. On the other hand, the number of transactions in the industry, on the contrary, increased by 35%.