Venture capital funding in blockchain startups declined to $2.4 billion in Q3 2024, down 20% from the previous quarter and reflecting a total of 478 deals—a 17% decrease. Despite this downturn, the year's overall investment of $8 billion is on track to meet or slightly surpass 2023 levels. Notably, funding for startups integrating artificial intelligence with blockchain saw a fivefold increase, with significant investments coming from Sentient, CeTi, and Sahara AI totaling $188 million. Key sectors include layer-1 blockchain projects, which received $341 million, while Web3 and gaming suffered a 39% drop in funding. Early-stage companies captured 85% of the funding, averaging deal sizes of $3.5 million. Several notable startups secured funding in early November: Eidon AI raised $3.5 million to develop AI-driven blockchain solutions; Brevis obtained $7.5 million for offchain computations verified onchain; and Multiledgers raised $1 million for managing ESG-linked assets. Alluvial expanded its total funding to $22.5 million for its decentralized staking protocol, supporting institutional needs in the crypto sector.

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