Web3 startups raised $2 billion in over 300 deals in Q3 2024, showing a 43% increase from $1.4 billion raised in Q3 2023, but a 13% decrease from Q2 2024. This marks the lowest number of deals since Q2 2020 and follows a peak in Q1 2022 where nearly 1,200 deals were made. Despite the decline in deals, significant funding amounts were achieved with eight rounds of $50 million or more, including a $350 million round for a 3D immersive environment creator. The growth in funding is attributed to renewed interest from Bitcoin and Ethereum ETFs, particularly the Bitcoin ETF, which allowed traditional investors to engage with cryptocurrencies more easily. However, the reduction in deal flow raises concerns about fewer startups being funded and potential challenges for future financing rounds. This trend could indicate that investors are becoming more selective or that the emergence of compelling Web3 companies is becoming less frequent. Despite these challenges, there are signs of stabilization in Web3 funding.

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