This week saw over $253 million invested in the crypto startup sector, highlighted by the Celestia Foundation's successful $100 million raise for its modular blockchain network.

In September 2024, crypto startups secured more than $691 million in venture capital, reflecting a 3% increase from the previous month.

Celestia's recent funding round, led by Bain Capital, brought its total fundraising to $155 million for its innovative modular data availability layer protocol.

Blockchain infrastructure projects were the major beneficiaries in September, securing $457 million, which accounted for 71.5% of total investments in the crypto ecosystem.

Conversely, funding for decentralized finance (DeFi) startups saw a significant decline, with only $58 million raised in September, marking a 55% drop from August.

In August, DeFi investments represented nearly 25% of total investments, while AI accounted for 15%, but September's focus shifted towards infrastructure.

Despite the influx of capital, only 1% of crypto startups have achieved product-market fit, and just 12% have secured follow-on funding, indicating challenging prospects ahead.

Investments in blockchain gaming continued to rise, with $68 million directed towards this sector's startups for the second consecutive month.

The meme coin market has also seen a resurgence, with a 25% increase in total market cap, surpassing $55 billion, driven by popular tokens like Shiba Inu and Pepe.

In a significant legal move, the U.S. Department of Justice seized domains linked to three crypto exchanges allegedly involved in over $800 million of illicit transactions.

In related news, Caroline Ellison, a prominent figure in the crypto space, was sentenced to two years in prison for her role in the collapse of the FTX exchange.

Meanwhile, Huma Finance secured $38 million to develop its blockchain-based payment network, showcasing ongoing interest in innovative financial solutions.