Data shows that Web3 ventures in the first quarter of 2023 about $2.8 billion down 80% from the same period last year.
The figure is estimated at around $4 billion by the end of Q2 and may not be reached due to the challenging market.
According to The Block, research data by K33 Research shows that Web3 ventures in the first quarter of 2023 fell 80% year-on-year to just $2.8 billion.
Anders Helseth, managing director at K33 Research, said that if you look at Web3 and crypto totals, venture capital investment in the first half of 2022 will be $15 billion. However, that figure is estimated at around $4 billion in the first and second quarters of this year and could fall further.
As previously reported, a study by analytics firm K33 Research showed that the number of jobs in the crypto industry has dropped by 10% over the past year (about 190,000 to 210,000).
Nearly 30% of the 190,000 crypto workers live in the US and Asia, and Australia together comprise around 35% of the global crypto workforce. India accounts for 20% of Asia‘s jobs, more than China. Meanwhile, mainland Europe is home to 24% of the world’s crypto jobs, with the UK leading the region with 13,000.
According to The Block Pro, there was $33.2 billion in blockchain venture funding and 2,453 transactions in 2022.
According to many experts predictions, 2023 will be an accumulation period, setting the stage for the next cycle. If history repeats, the market will likely bottom out in the first quarter of 2023 before entering an uptrend in mid-2023.
The market will likely see the strongest growth in 2024 – 2025 when risk appetite and speculation are strong again. In particular, the firm said the crypto and stock markets will continue to have a positive correlation. For Web3, the SocialFi model is likely a promising trend.
“The reduction in funding for Web3 is not an imminent threat to the web3 services being built in the coming years, but like all projects, the treasury must be fully charged before it runs out”. The K33 report states.