In 2023, crypto companies raised approximately $6.25 billion, a significant decrease compared to the $22 billion collected in 2022. Despite this downturn, the cryptocurrency market managed to recover, with Bitcoin surging over 150%, delighting investors. However, the funding for crypto firms saw a dramatic 70% drop from the previous year.
The decline in funding was influenced by the collapse of several crypto firms, including Terraform Labs and FTX, which shook investor confidence. Nevertheless, AI-based crypto projects made a notable impact in 2023, capturing the interest of the market.
Data from blockchain analytics platform DefiLlama indicates a substantial reduction in crypto funding in 2023. In contrast, March 2022 saw a peak in funding, with crypto companies raising $3.677 billion in that month alone.
The total funds raised in 2023 amounted to around $6.25 billion, marking a steep decline from the previous year. February 2023 recorded the highest funding of approximately $877 million. Due to the funding shortfall, various companies faced the risk of closure, with many having to halt operations or resort to layoffs.
Amid these developments, AI companies successfully attracted significant funding in 2023. The launch of AI chatbots like ChatGPT and Bard played a crucial role in drawing investor attention, with AI firms raising about $33 billion in the third quarter of the year.
The advancements in AI have prompted major companies like Meta, Microsoft, and Google to enter the field. Crypto projects focusing on AI have pleased investors in 2023, sparking widespread interest in artificial intelligence among users.