Funding for the DeFi venture deal fell in May to the lowest

According to statistics, decentralized finance-focused venture deal activity fell in May.

In terms of dollars, funding for the sector fell to $176.30 million in May, the lowest level since September 2021.

First time since last year

Furthermore, according to John Dantoni, an analyst at The Block Research, DeFi was not one of the two most common transaction types. This was the first time this has happened since July 2020.

However, the sector’s funding hasn’t completely dried up.

In April, 12 investment rounds totaling more than $10 million were completed for DeFi and Web3.

In 2022, significant instances include ox Labs, a decentralized exchange system that got $70 million in Series B funding, and Tribal, a TradFi and DeFi financing platform that raised $60 million. BloXroute, a DeFi trading platform, received $70 million in April, funded by SoftBank.

Certora, which provides smart contract security research, raised $36 million in a Series B headed by Jump Crypto in May.

Despite these agreements, the decrease in DeFi financing contrasts sharply with the summer of 2020, dubbed “DeFi Summer,” when billions were invested in DeFi apps and protocols, according to prior research compiled by The Block.

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About DeFi investing- know how does it work

Decentralized finance, often known as DeFi, is a new approach to banking and financial services that relies on peer-to-peer payments and blockchain technology.

DeFi enables “trustless” banking via blockchain, bypassing traditional financial intermediaries such as banks and brokers.

Decentralized finance, or DeFi, is more than just a buzzword: it refers to financial services that run on open-source blockchains. 

Anyone around the globe may take complete management of their assets utilizing a smart device with an internet connection, avoiding centralized financial middlemen.

Decentralized finance (DeFi) is a new financial system similar to cryptocurrencies that is based on cryptocurrency. Banks and institutions lose control over money, financial products, and financial services under the system.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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