The crypto community has recently enjoyed a welcome respite from the gloomy weather of the past year, thanks to the slight rise in asset values and an increase in overall activity. However, it is far from certain that this recent progress will translate into more lasting interest in the decentralized economy.
To recap: Major crypto tokens have recently benefited from higher prices, which has allowed Web3 trading volumes to return to levels we haven’t seen since the beginning of this year. This rise has even occurred in the NFT market, where trading has increased in recent weeks.
The Exchange explores startups, markets and money.
Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.
Although trading activity has since moderated after the small boom we experienced in October, the value of crypto-based assets has generally held onto its gains. The total value of all crypto tokens grew from just over $1 trillion in September to over $1.4 trillion in October, and now stands at $1.38 trillion, according to data from CoinMarketCap.
That’s a lot of wealth created in a short period of time.
TechCrunch+ is closely monitoring Crunchbase’s web3 funding tracker, which reports that investments in web3 startups are on track to post another quarter of decline. For reference, Web3 Companies raised $10.6 billion in Q4 2021, but only managed to gather $2.9 billion in Q4 2022, per Crunchbase. This year, through November 21, that amount is $691.7 million. This final figure puts Web3 startup fundraising on track to land below the $1.3 billion Web3 startups raised in the third quarter of 2023, the lowest quarterly result since 2020.