Top 5 trends in web3 startup investments

Web3 startups have left an indelible mark, securing a whopping $8 billion in investments across a multitude of rounds this year.

Are you curious about the key sectors where web3 investors are placing their bets? We’ve got all the insights in this article, analyzing data from the Crypto Rank portal.

Blockchain Services

Blockchain services are emerging as a powerhouse, attracting significant investor interest with a staggering $3 billion raised over the year. In November alone, startups in this space secured $1.02 billion, indicating steady growth.

Projects in Focus for December:

- Carv: A decentralized autonomous organization (DAO) focused on building player-owned gaming identities.

- Pyth Network: A blockchain solution providing on-chain access to valuable financial market data through a pricing oracle.

- Shadow: Reducing development time and costs for advanced on-chain data indexing and analytics, accelerating product development, saving gas, and aiding users in obtaining more data.

Centralized Finance (CeFi)

CeFi stands out as the second most sought-after area for investment, securing over $1 billion in a year. Last month, these startups raised over $310 million, with only March surpassing it at $337.35 million.

December Investment Highlight:

- HesabPay: A digital payments platform utilizing the Algorand blockchain for humanitarian aid.

Decentralized Finance (DeFi)

DeFi projects have attracted nearly $1 billion in investment, with standout months in March ($134.65 million) and October ($128.79 million).

In December, Curvance, developing a decentralized stablecoin lending protocol, received investment.

GameFi

Investors poured over $800 million into GameFi startups this year, with the highest amounts invested recorded in February ($133.70 million) and September ($199 million). This month welcomes Endless Clouds, a game development studio contributing to the gaming revolution.

Chain and Blockchain Infrastructure

Investor attention remains evenly split between startups focused on chain and blockchain infrastructure, each receiving around $600 million. December fundraising highlights include Ten (Obscuro), providing an EVM-based encrypted layer 2 for Ethereum, and Babylon, striving to scale Bitcoin for a more secure and decentralized future through innovative security-sharing protocols.

Conclusion

Reflecting on 2023, web3 startup investment trends showcase a landscape ripe with innovation. From blockchain services to gaming ecosystems and infrastructure, each sector contributes to the ever-evolving web3 story. The potential for growth and disruption in the coming years appears limitless. Stay tuned with Crypton Studio for more updates on the web3 frontier!