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Aspen Digital Investing Insights: Q2 2022 Report

State of Blockchain VC Funding


Global venture funding across all sectors has slowed down over the first half of 2022, dropping from $177 billion in Q4 2021 to $108 billion in Q2 2022. Despite a “red-hot” Q1 in blockchain, venture funding has decreased significantly in Q2 — from $9.85 billion to $6.76 billion. The collapse of LUNA and UST in May triggered a cascading chain of liquidity and insolvency crises amongst many crypto market participants, and the entire industry market capitalisation plunged under $1 trillion for the first time since January 2021. Bearish market sentiment on digital assets, coupled with pricing issues of global risk assets, led to a slowdown in blockchain venture funding.


Growth Stage Companies Marketed at Significant Discounts


Driven by bearish market sentiments in Q2, stakes in many growth stage companies are rumoured to be marketed at significant discounts from their last funding round. For example, Ethereum software company ConsenSys raised a $450 million Series D at a $7.1 billion valuation in 2022. However, the company is estimated to be trading at 46.5% below last round price. Blockchain.com successfully closed a Series D round at a $14 billion valuation; however, their shares are rumoured to be trading at 57.9% below its share price in March. OpenSea secured a $300 million funding round at a $14 billion valuation, yet their shares are rumoured to be trading at 47.8% below last round price. OpenSea daily fees totalled nearly $2.67 million in Q1, while in Q2, daily fees totalled $1.52 million representing a 43% QoQ decline.


To read the full version of Aspen Digital’s Q2 2022 Investing Insights report, click here: https://bit.ly/3Pf8L6P

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