African blockchain venture funding has decreased by 70% in the first half of 2024 compared to the same period in 2023. Reports say that on July 16, Swiss blockchain venture capital firm CV VC released its latest report on African venture funding. The report highlighted that Africa secured $34.7 million in H1 2024, a stark contrast to the $116 million raised in H1 2023.
Despite the downturn in funding, CV VC reported a 9% increase in the number of deals made in the region. This indicates a rising interest in blockchain ventures despite the lower financial influx.
Broader Funding Decline
The decline in African blockchain venture funding is part of a broader global trend. Worldwide, blockchain funding also experienced a significant drop. CV VC reported that the space saw $10.66 billion in funding in the first half of 2023 but only $5.74 billion in the same period in 2024. This represents a 64% drop year-on-year.
In terms of deals, 2024 reportedly recorded only 678 deals globally, compared to 1,306 deals in the same period in 2023. This shows a 49% decrease in blockchain venture capital deals made worldwide.
Share of the African Blockchain Venture Funding
According to the report, African blockchain venture funding accounted for 6.4% of all venture funding and 12.5% of regional deals. CV VC’s data shows an all-time high deal share for Africa, suggesting the continent performed better than its global blockchain VC counterparts.
On the other hand, at the global level, blockchain funding allegedly represented 3.5% of all venture funding and 5.9% of total deals. The higher percentage of blockchain venture activity in Africa “suggests a greater regional focus on blockchain solutions, driven by unique challenges that this technology can address,” according to CV VC.
Despite the decline in venture funding, Africa saw an increase in its share of crypto startups. On July 10, blockchain startup accelerator and founder community Alliance highlighted a 5.2% increase in Africa’s share of crypto startups, the news reported.
Apart from Africa, Europe emerged as the leading place for new crypto startups, overtaking the United States and Canada. Asia came in third place with a 26.8% share, showing a dynamic shift in the global blockchain and crypto startup landscape.
The report’s findings underscore Africa’s strategic focus on blockchain solutions to address regional challenges despite the overall decline in global blockchain funding. The increase in the number of deals and the rise in crypto startups reflect a resilient and growing interest in blockchain technology across the continent. These USDT usage reports highlight how regions like Africa are leveraging blockchain to meet their unique needs, positioning themselves strongly in the global blockchain ecosystem.
This overview, including the emphasis on USDT usage, Tether, Bitcoin, ETH, Ethereum Spot ETF, and BTC, aligns with the evolving landscape of blockchain and crypto ventures in Africa. By understanding the trends highlighted in these USDT usage reports, stakeholders can better navigate the complexities and opportunities within the African blockchain market.
Final Thoughts
The decline in funding should not overshadow the notable advancements in deal activities and the emergence of crypto startups. Africa’s focus on blockchain solutions indicates a promising future for the region in the blockchain and cryptocurrency domains.
