Web3 Weekly: Funding Down, Crypto Up

This is a weekly feature that will look back at the week that was in crypto, blockchain and Web3, and offer insights and analysis. Check out our previous column here.

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The final funding numbers for Web3 startup from last year are in, and it doesn’t paint a rosy picture for founders in the space that may be looking to raise money this year.

Funding was down significantly and dropped like a rock in Q4.

That is not a shock considering the headlines surrounding crypto and the overall slowdown in venture capital right now. The FTX scandal alone would be enough to violently rock the crypto segment of the Web3 industry.

However, something weird also is happening on the crypto front. Both ether and bitcoin are at prices they have not seen since before FTX filed for bankruptcy. Bitcoin is now above $2,100 and ether is more than $1,500 — prices not seen since early November.

While it’s much too early to call it a rally, it does speak to the resiliency of crypto. All the negative news around FTX and the fighting between Genesis and Gemini, have not been able to slow crypto prices which have been on the rise since the start of the year.

As we talked about in the Web3 funding piece, it is hard to predict where funding will go this year, but a rising crypto market would not hurt how investors see the market and the risks they might want to take on young startups.

Further reading:

Illustration: Dom Guzman

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