According to a recent report from Cointelegraph Research, the blockchain industry saw a significant decline in venture capital investment during the second half of 2022.

The report, which analyzed data from Cointelegraph's Venture Capital Database, found that investment in the industry dropped from $30 billion in the first half of the year to just $7.3 billion in the second half.

This decline was seen across all five major sectors of the blockchain industry, including decentralized finance (DeFi), centralized finance (CeFi), nonfungible tokens (NFTs), infrastructure, and Web3.

The report attributes this decline in investment to the fallout from the collapse of Terra in the first part of 2022. This event seems to have had a chilling effect on the industry, as investors were hesitant to put more money into the space.

Despite a brief bounce in capital investment in September, the last three months of the year saw investment stay below $1 billion. Additionally, the number of deals dropped considerably, down to just 182 in Q4, with only five deals above $100 million.

This Techloy chart shows the amount of venture capital funding that went to blockchain companies per month in 2022.