Just four months into this year, Web3 and crypto startups have experienced their biggest boom in funding yet. This dramatic surge was driven by monumental investments and savvy acquisitions throughout the industry. At the same time, the economy was undergoing a massive increase in speculative financial activity. This growth was driven by major transactions and a new surge of confidence within the market.

The deal count is lower than the previous quarter when Web3 startups raised $1.6 billion over 242 deals. Funding for crypto and blockchain companies skyrocketed to $3.8 billion in Q1, across 220 deals. That’s a staggering 138% jump from last quarter.

Binance infamously got their last unannounced $2 billion investment from Abu Dhabi-based MGX. This increase was a huge driver to the overall increase in crypto and blockchain funding during this time. This new, huge canary-in-the-coal-mine injection of capital is yet another indicator of the increasing interest and confidence in the crypto space.

Coinbase recently announced their acquisition of Deribit for a cool $2.9 billion. This historic deal represents the biggest acquisition in the crypto space to date. This strategic acquisition deepens Coinbase’s foothold in the growing crypto options ecosystem and further expands the company’s service offerings.

"This isn’t just another addition; it’s foundational to our vision of creating the most comprehensive, compliant, and user-friendly derivatives platform globally." - Coinbase blog post

Ripple further extended its growth streak with a blockbuster $1.25 billion buyout of Hidden Road brokerage house. This merger comprised $700 million in cash and 11 million shares of Coinbase. Even more notably, Kraken plans to complete the $1.5 billion purchase of NinjaTrader, a competing retail futures trading platform.

Last year, Deribit was able to close a $40 million venture round with flying colors. This financing was raised at a $400 million valuation and included participation from QCP Capital and Polybius Capital.

>The U.S. Securities and Exchange Commission’s (SEC) decision to close a legal case against Ripple has added to positive market sentiment. Experts have told us that Web3 mergers and acquisitions (M&A) should soon be on the rise thanks to the Ripple deal.

It’s true that if President Donald Trump wins reelection, that could unleash a new wave of crypto market enthusiasm. Such a change would limit the regulatory burden, making for a friendlier, inviting atmosphere for the nascent industry. The crypto market seems to be expecting a broad easing of regulatory tightness.

“We’re excited about the path ahead and look forward to welcoming Deribit into the Coinbase family as we shape the future of crypto markets together.” - Coinbase blog post