The total market capitalisation of all actively traded tokens has reduced to a low of $141 billion from a high of close to $800 billion at the beginning of the year. While the pace and extent of the “dip” may have come as a surprise to many, we had anticipated a winter.
The fall in token prices have also affected how startups in the space have been raising money and deploying them too. Token sale events raised a little over $1 billion this quarter, a decline of over 74% from Q1 2018. Estimates also indicate that September saw only $150 million being raised through token sales. Would this mean the ecosystem is all set for doom and gloom? Data suggests otherwise.
Our quarterly state of blockchains deck
recently explored the maturing of the ecosystem by putting venture capital in the space in the context of the changing funding landscape around token sales.
Here are some key findings.
1. VC Investments have surged from a total of $900 million in 2017 to $2.85 billion this year.
2. VCs are active across all funding stages with 119 deals disclosed this quarter, the most ever as good projects
3. The US continues to dominate investments in the industry.