The Networks Powering Blockchain’s $3.4B Investment in Q3 2024

In Q3 2024, blockchain investment reached $3.4 billion across 649 deals, reflecting stable dollar investment but a 22% decline in deal activity compared to Q2. Despite this drop, Web3 continues to dominate the sector, projected to secure over $2.1 billion by the end of the year. This growth is driven by heightened interest in AI and Decentralized Physical Infrastructure Networks (DePIN).

Investment in DePIN protocols is expected to reach $1.1 billion by year-end, nearly doubling previous records, with a significant focus on decentralized computation and AI applications.

Several key blockchain networks have seen notable deal activity this quarter:

• Telegram’s TON Network: A standout performer, with a 263% quarterly increase in deals. TON is projected to close 70 deals by year-end, marking a 347% Y/Y increase.
• Solana and Bitcoin: Solana is on track for 162% Y/Y growth, expected to close 309 deals in 2024, while Bitcoin-related projects are projected to hit 163 deals, up from 77 in 2023. Solana memecoins' popularity and Bitcoin’s Layer-2 ecosystem expansion are driving renewed investor interest in both networks.
• Coinbase’s Layer-2 Network, Base: Experienced a 225% Y/Y increase in deal activity, further establishing its position as a major player in the EVM-compatible Layer-2 space.

For a comprehensive overview of Q3 2024's Blockchain Venture Funding and M&A landscape, explore the detailed report by The Block Research's Director of Funding, John Dantoni . Gain access to this in-depth analysis with a trial subscription to The Block Pro, your gateway to expert perspectives and cutting-edge research in the blockchain and crypto sectors.