Blockchain Industry Sees $120 Million in VC Funding in March

Venture capital funding continued to pour into the blockchain and cryptocurrency industry in March, despite market commentators speculating about the end of the bull market due to Bitcoin’s 30% retracement. Venture capital flows are considered a vital sign for the blockchain industry, with higher deal activity indicative of strong investor appetite and growing innovation in the space.

In February, blockchain startups raised a combined $1.1 billion, with projects spanning decentralized finance, decentralized physical infrastructure networks, and payments attracting the lion’s share of capital flows. Early signs suggest that March was an even stronger month for crypto VC deals, as evidenced by the growing size of the investment rounds and the number of investors participating. Eight deals are featured in this month’s VC Roundup, and seven of them were valued in the eight-figure range.

Across Protocol, an Ethereum crosschain interoperability platform, raised $41 million in a token sale led by San Francisco-based venture firm Paradigm. Coinbase Ventures, Bain Capital Crypto, and Multicoin Capital also participated in the token sale round. Across Protocol is expanding Ethereum layer-2 connectivity through so-called “intents,” an architecture approach that decouples asset transfers and message verification. This approach enables Across to send messages cheaply, quickly, and securely, setting it apart from other message-passing protocols.

Enterprise Web3 company Crossmint has closed a $23.6 million funding round to scale its onchain onboarding technology, which is designed to help companies and AI agents embrace Web3 without needing blockchain expertise. The funding round was led by San Francisco-based venture firm Ribbit Capital. According to Crossmint co-founder Rodri Fernandez, the platform provides low-code APIs for a variety of blockchain functions, including wallets, stablecoins, tokenization, and credentials. The announcement also claimed that more than 40,000 companies and developers are now using Crossmint across more than 40 blockchains.

New York-based remittance app Abound has closed a $14 million funding round led by Near Foundation, with participation from Circle Ventures. The Abound app has been designed to bridge the remittance gap between India and its vast diaspora of citizens in the United States. The app claims to have processed more than $150 million in remittances. Although it’s not entirely clear how blockchain technology and digital assets factor into Abound’s service offerings, if at all, participation from Near and Circle Ventures suggests that blockchain-focused companies are increasingly focused on cross-border payments and remittance services.

Chronicle, an Ethereum Oracle and tokenization infrastructure provider, raised $12 million in seed funding led by Strobe Ventures, formerly known as BlockTower Venture Capital. Additional investors included Galaxy Vision Hill, Brevan Howard Digital, Tioga Capital, Fenbushi Capital, Gnosis Ventures, 6th Man Ventures, and several angel investors. Chronicle connects protocol developers to real-time data feeds, which are essential for DeFi and real-world asset (RWA) tokenization ecosystems. The company cited growing institutional interest in RWA tokenization as one of the reasons for its early success in raising capital.

In March, blockchain developer Peregrin Exploration debuted the Level USD stablecoin with $2.6 million in backing from Dragonfly Capital, Polychain, Flowdesk, and others. Level USD is a yield-bearing stablecoin that issues digital dollars collateralized by restaked stablecoins. The stablecoin’s market capitalization has grown significantly since its launch, reaching $116 million at the time of writing. Level USD is integrated with several DeFi protocols, including Pendle, LayerZero, and Specta. It can also be used as collateral on noncustodial lending platform Morpho.

No-code blockchain developer Halliday has closed a $20 million Series A funding round to scale its Agentic Workflow Protocol (AWP) — an AI tool that helps developers build DeFi applications without the need to write smart contracts. The funding round was led by a16z Crypto, with additional participation from SV Angel, the Avalanche Blizzard Fund, Credibly Neutral, Alt Layer, and other angel investors. Through AWP, blockchain companies can “build applications in hours, not years,” Halliday said in its announcement. Halliday’s programming model handles all the technical aspects of blockchain development and execution, which can theoretically enable companies to scale their products faster.

Validation Cloud, a company at the intersection of artificial intelligence and blockchain infrastructure, has closed a $15 million Series A investment round backed by True Global Ventures. Additional investors include Cadenza, Blockchain Founders Fund, Bloccelerate, and others. The funding will be used to expand Validation Cloud’s Web3 infrastructure solutions, including staking, node API, and data offerings. Validation Cloud provides access to blockchain data and offers node and staking solutions to institutions. Its technology is used by Hedera, Aptos, Stellar, EigenLayer, Polygon, and others.

Blockchain investment firm Skytale Digital has launched the Polkadot Ecosystem Fund, earmarking $20 million to further develop the so-called “network of networks.” The fund combines financial support, technical expertise, and mentorship to help Web3 developers expand their product offerings in the Polkadot ecosystem. Specifically, the fund is targeting decentralized applications and critical infrastructure projects.

In summary, the significant venture capital funding deals in March indicate that the crypto bull market is far from over. The growing size of investment rounds and the number of investors participating suggest a strong appetite for innovation in the blockchain and cryptocurrency industry. The diverse range of projects receiving funding, from crosschain interoperability to remittance services and AI-driven blockchain solutions, highlights the breadth of opportunities in the space.

Analysts suggest that the continued investment in the blockchain industry is a positive sign for the future of cryptocurrencies. The growing interest in real-world asset tokenization and the development of new infrastructure solutions indicate that the industry is maturing and attracting more institutional investors. The success of projects like Across Protocol, Crossmint, and Halliday demonstrates the potential for blockchain technology to revolutionize various industries, from finance to supply chain management.