Following a year that was largely dominated by everything Web3-related, funding to VC-backed startups in Web3 in 2022 fell by about a fourth — from a record high of $29.2 billion in 2021 to about $21.5 billion in 2022, according to data from Crunchbase.

The still-young space experienced a cooling of investor's interest following venture capital spending pullback globally and investors turning to more mature, proven industries in the year.

As for deal count, it remained pretty even with a difference of just fewer than 100 deals between the two years. However, unlike 2021 when FTX, NYDIG and Robinhood raised rounds of $1 billion or more, 2022 saw no round nearly that size.

Two other startups also raised $400 million rounds this year in the sector — FTX and FTX US. Overall, there were three dozen rounds in 2021 of $200 million or more that went to VC-backed Web3 startups, while 2022 saw only 25.