September 2024 Investment Trends: DeFi Leads as $434.66M Raised Amid Market Decline

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— 4 min read
September 2024 Investment Trends: DeFi Leads as $434.66M Raised Amid Market Decline

In September 2024, the investment landscape saw a total of $434.66M raised across 95 rounds, marking a significant decrease of 28.12% in funds raised and an 18.29% drop in rounds compared to September. This decline continues a downward trend from the previous months, where figures fluctuated but remained robust overall, with November 2023 peaking at $1.68B.

Over the past year, investment activity generally exhibited strong momentum, but the latest figures suggest a potential shift. Factors such as market stability and regulatory news have influenced investor sentiment, evidenced by Vitalik Buterin's clarifications about Ethereum, which may have reassured some investors.

Highlighting key developments, Celestia led September with a $100M investment round. DeFi emerged as the most active sector, fueled by ongoing innovation. Notably, Andreessen Horowitz (a16z) remained the top investor, reflecting confidence in the evolving crypto landscape.

Categories

Introduction

This month witnessed a notable shift in blockchain investments. The DeFi sector led with $172.74M, up from $140.44M, despite fewer rounds. Chain investments surged to $164.70M from $34.20M, signaling growing confidence in modular solutions. Conversely, Blockchain Service and CeFi saw declines, raising $141.44M and $18.80M, respectively. This reflects a market prioritizing innovative projects while becoming selective in traditional areas.

DeFi

This month, the DeFi category raised $172.74M across 15 rounds, showing an increase from last month's $140.44M but a drop in the number of rounds completed, which last month was 22. The current month indicates a continuation of the rising investment trend in DeFi, despite fewer rounds. The significant increase in funds raised suggests heightened interest and confidence in DeFi projects, particularly those enhancing user experience and security.

The largest projects this month include:

  • Infinex: Raised $65.29M from key investors like Loi Luu and Solana Ventures. Infinex is a decentralized perpetuals exchange offering a user-friendly interface similar to centralized exchanges.
  • Huma Finance: Raised $38.00M from investors such as Santiago R. Santos and 500 Global. Huma connects borrowers with investors through an income-backed lending protocol.
  • Drift Protocol: Raised $25.00M from Multicoin Capital and Blockchain Capital. Drift focuses on decentralized perpetual trading with innovative mechanisms.

Chain

In the Chain category, $164.70M was raised this month over 6 rounds, a significant increase from last month's $34.20M across the same number of rounds. This illustrates a strong upward trend, signaling rising confidence in modular blockchain solutions. The current figures indicate a robust interest from investors looking to support innovative Layer 1 and Layer 2 solutions.

The largest projects this month are:

  • Celestia: Raised $100.00M from Bain Capital Crypto, offering a modular blockchain network with innovative data availability solutions.
  • Toncoin: Raised $30.00M from Bitget, showcasing a decentralized layer-1 blockchain designed for scalability and ease of use.
  • Hemi Network: Raised $15.00M with a focus on enhancing network utility and connectivity.

Blockchain Service

This month, the Blockchain Service category raised $141.44M in 22 rounds, down from $390.63M in 24 rounds last month. While the total raised shows a decline, the number of rounds completed indicates sustained interest in blockchain service solutions. The market appears to be consolidating, with investors focusing on projects that offer clear utility and innovative solutions.

The leading projects are:

  • Helius: Raised $21.75M to provide streamlined APIs for on-chain data management.
  • Hypernative: Raised $16.00M to enhance security monitoring in Web3.
  • Fuse: Raised $12.00M, developing a decentralized renewable energy network.

GameFi

In GameFi, $79.35M was raised this month across 11 rounds, a rise from $63.87M in 12 rounds last month. This upward trend suggests growing investor confidence in gaming initiatives that leverage blockchain technology. The increasing funds reflect a strong demand for innovative gaming ecosystems.

The largest projects include:

  • Balance: Raised $30.00M, providing a comprehensive Web3 gaming ecosystem.
  • SecondLive: Raised $12.00M, focusing on building diversified metaverse experiences.
  • Castile: Raised $8.00M, a rogue-like RPG set in a fantasy world.

Social

This month, the Social category raised $55.00M in 2 rounds, a decrease from $84.00M in the same number of rounds last month. The drop in total funds raised may indicate a shift in investor focus, but the steady number of rounds suggests sustained interest in social platforms that integrate blockchain technology.

Top projects include:

  • Tune.FM: Raised $50.00M, creating a tokenized music marketplace.
  • Vana: Raised $5.00M, focusing on user-owned data in AI systems.

CeFi

In CeFi, $18.80M was raised this month across 3 rounds, down from $56.70M in 4 rounds last month. The decrease suggests that investors may be more selective in this space, focusing on projects demonstrating clear value propositions.

The leading projects are:

  • TrueX: Raised $9.00M to create a stablecoin-native exchange.
  • RD Technologies: Raised $7.80M, developing a Hong Kong Dollar-backed stablecoin.
  • Puntored: Raised $2.00M, offering financial services across multiple regions.

Blockchain Infrastructure

This month, the Blockchain Infrastructure category raised $14.64M in 5 rounds, a significant decline from $149.80M in 11 rounds the previous month. The drop indicates a potential cooling off in investments, highlighting the need for projects to demonstrate tangible benefits and utility.

Key projects are:

  • Fermah: Raised $5.20M, focusing on zero-knowledge proof marketplaces.
  • Octra: Raised $4.00M, an FHE blockchain network.
  • t1 Protocol: Raised $2.50M to simplify decentralized application development.

NFT

This month, the NFT category raised $8.00M in 1 round, a significant increase as last month saw no funds raised. This surge indicates renewed interest in NFT projects, particularly those offering innovative monetization strategies.

The primary project is:

  • DRiP: Raised $8.00M, enabling creators to distribute digital collectibles directly to fans.

Stablecoin

This month, the Stablecoin category raised $6.00M in 1 round, up from $3.60M in the previous month. This growth suggests a steady interest in stablecoin projects as they provide essential infrastructure for the crypto ecosystem.

The notable project is:

  • IDA: Raised $6.00M, a digital asset technology company focused on blockchain finance adoption.

Currency

The Currency category raised $3.00M in 1 round this month, compared to no funds raised last month. This indicates a budding interest in new cryptocurrency projects.

The key project is:

  • Ore: Raised $3.00M, a mineable token on the Solana blockchain.

Most Active Investors

Andreessen Horowitz (a16z) led with participation in 9 rounds, focusing mainly on Blockchain Service and GameFi categories. Robot Ventures followed with 5 rounds, concentrating on Chain and DeFi. Finally, Aptos also participated in 5 rounds, primarily in CeFi and GameFi.

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