The crypto industry faced significant headwinds in 2022, marked by Terra's collapse in May—an event analysts dubbed the onset of another Crypto Winter. Venture capital activity dwindled as market conditions worsened, with funding for crypto startups declining steadily each quarter.
Quarterly Crypto Venture Funding (2022)
| Quarter | Funding Volume |
|------------------|----------------|
| Q1 | $8.8B |
| Q2 | $6.2B |
| Q3 | $3.4B |
| Q4 | $2.4B |
Source: Crunchbase
Despite the downturn, several companies secured massive funding rounds—primarily in early 2022. Below, we highlight the year’s largest deals and their aftermath.
1. Yuga Labs – $450M
Investors: Andreessen Horowitz (lead)
Valuation: $4B (March 2022)
Context: The creator of the Bored Ape Yacht Club NFT series faced scrutiny as NFT demand plummeted and the SEC investigated alleged unregistered securities sales.
2. ConsenSys – $450M
Investors: ParaFi Capital (lead)
Valuation: $7B (March 2022)
Context: Ethereum-focused developer behind MetaMask addressed privacy concerns after backlash over data practices.
3. Polygon – $450M
Investors: Sequoia Capital, Tiger Global
Valuation: MATIC token peaked at $13B market cap, now below $7B.
Use Case: Scaling Ethereum for DeFi and gaming apps.
4. Circle – $400M
Investors: BlackRock, Fidelity
Update: Canceled SPAC merger ($9B valuation) due to SEC hurdles.
5. FTX US – $400M
Investors: Paradigm, Temasek
Valuation: $8B (January 2022)
Aftermath: Collapsed post-FTX scandal.
6. FTX – $400M
Valuation: $32B (January 2022)
Notable: Preceded SBF’s arrest and exchange implosion.
7. Animoca Brands – $358.8M
Focus: GameFi (Axie Infinity fallout reduced sector appeal).
8. NEAR Protocol – $350M
Investors: Tiger Global
Performance: Token market cap dropped from $12.5B to ~$1B.
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9. Amber Group – $300M
December Lifeline: Layoffs and FTX exposure followed funding.
10. Mysten Labs – $300M
Project: Sui blockchain (pre-launch, led by ex-Meta team).
FAQ Section
Q: What caused the 2022 Crypto Winter?
A: Terra’s collapse, macroeconomic pressures, and loss of investor confidence triggered the downturn.
Q: Which crypto sector suffered the most?
A: GameFi and NFTs saw sharp declines due to waning demand and regulatory scrutiny.
Q: Are any 2022-funded projects still thriving?
A: ConsenSys (MetaMask) and Polygon remain active, albeit at reduced valuations.
The 2022 funding landscape underscores crypto’s volatility—even billion-dollar raises couldn’t shield firms from market crashes and regulatory crackdowns.
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