Web3 Investment Soars: VC Interest in Crypto Returns, AI and Gaming Lead the Way

Web3 Investment Soars: VC Interest in Crypto Returns, AI and Gaming Lead the Way
Table of Contents


  • Significant increase in investment in Web3 during the first quarter of 2024, with an increase of 55%.
  • The number of venture capital (VC) investment deals on Web3 also increased by 36% in the same period.
  • Featured sectors include stability, DeFi, blockchain gaming, and Layer 2 expansions.

The first quarter of 2024 has seen a revival in interest in Web3 among venture capital (VC) investors, according to a joint report from QuickNode and Artemis.

Total investment in Web3 companies increased by an impressive 55%, indicating a significant return of VC interest towards the cryptocurrency space.

An important highlight is the significant 36% uptick observed in the volume of VC investment agreements within the sector over the corresponding timeframe.

This trend indicates a more expansive enthusiasm towards Web3 protocols, signaling a heightened level of trust in the capabilities and potential of these ventures.

Particularly noteworthy is the exceptional growth witnessed in sectors such as stablecoins, DeFi (Decentralized Finance), gaming, and the expansion of Layer 2 technologies, all of which have played pivotal roles in driving this overall growth trajectory.

Stablecoins saw a 42% quarter-on-quarter increase in user activity, driven by Bitcoin ETF approval and listings, the upcoming Bitcoin halving in April, the exit of hyperinflated fiat currencies, and the resurgence of DeFi.

Investment in Web3 Soars: VC Interest in Crypto Returns, AI and Gaming Lead the Way

web3 DeFi, despite regulatory challenges, recorded 291% quarterly growth in user activity

The industry has experienced a resurgence in confidence, with a heightened awareness of risks and a focus on refining innovations within this domain.

As a result of these developments, there is growing optimism for a potential resurgence akin to a second ‘DeFi Summer,’ fueled by significant growth and transformative shifts within the sector.

A pleasant surprise was the massive 155% quarter-on-quarter growth in active blockchain gaming addresses, demonstrating Web3’s ability to attract and retain a growing player base.

Additionally, the rapid expansion of Layer 2 solutions such as Arbitrum and Base signals significant progress in platform scalability  and improving on-chain liquidity.

The report highlights an exciting quarter for Web3, with a substantial increase in investment, significant expansion in several key sectors, and positive signs for the future of blockchain technology and cryptocurrencies.


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