In its report with forecasts for 2023, Mesari notes that $35.9 billion was invested in companies in the cryptocurrency market in 2022. The amount is almost 20% more than the $30 billion raised by sectoral initiatives in 2021.
Binance actively participated in the investment scene in 2022, pouring more than $500 million into various Web3 projects. The data is from the exchange’s report, which summarizes its activities in 2022. In addition to the data involving capital injections, Binance also notes that its average daily trading volume reached $65 billion, with 128 million users moving it.
Great contributions on Web3
The past year saw the largest corporate fund injections into the cryptocurrency market, which included some of the largest contributions in the history of the sector. These are the cases of the Luna Foundation Guard (LFG), which raised $1 billion, and the Flow blockchain, which received $725 million in investments. Both are among the top ten fundraisers in the cryptocurrency market.
In this scenario, Binance Labs, the investment arm of Binance, participated in 21 of the 1,713 funding rounds held in 2022, according to data from DefiLlama. In all, $517.6 million was invested, considering only contributions with disclosed amounts. This is because, out of the 21 rounds in which Binance participated, only nine had their values disclosed.
The two largest investments made by the investment arm of Binance have been made in infrastructure. A $300 million check was presented to Mysten Labs in September 2022, the company behind the Sui blockchain. This is a project developed by former Facebook employees (now Meta) who have been involved in the company’s initiatives related to the crypto market.
The second largest contribution was US$150 million, directed at Sky Mavis, the company behind the game Axie Infinity. At the time, the investment was seen as bold, as it was made after Sky Mavis’ Ronin network suffered the largest hack in crypto market history, with $624 million stolen.
Other Web3 companies that have also received investment from Binance Labs are Paragraph, a platform for users to publish Web3 newsletters; Ambit Finance, an application for creating functionality and increasing the use of Binance USD (BUSD); Tatsu Works, a studio focused on metaverse games; and Hooked, a decentralized social network.