The Southeast Asian (SEA) blockchain technology sector is demonstrating significant signs of recovery, experiencing a 45 per cent increase in funding in 2024, reaching US$592 million.
This marks a substantial rebound from the previous year when funding totalled US$408 million, though it still remains 74 per cent lower than the record US$2.27 billion raised in 2022.
A Tracxn study reveals that the sector witnessed improvements across various funding stages. Seed-stage funding saw a modest 3 per cent increase, reaching US$161 million. Early-stage funding experienced a more robust growth of 61 per cent, rising to US$393 million. Late-stage funding saw the most dramatic surge, skyrocketing by 344 per cent to US$37.7 million, although these figures are considerably lower than those seen in 2022.
Several companies secured notable funding rounds. SDAX led the pack, raising US$50 million in its Series B round, followed by Sygnum with US$40 million and WadzpPay with US$37 million. Polyhedra Network also became the sole new unicorn in the space after raising US$20 million in a Series B round.
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Cryptocurrencies, blockchain infrastructure, and smart contracts emerged as the top-funded segments. The cryptocurrencies segment attracted US$325 million, a 20 per cent increase from the previous year. Blockchain infrastructure experienced a remarkable 152 per cent surge, reaching US$287 million. The smart contracts segment grew nearly tenfold, raising US$19.6 million.
The year also saw increased activity in exits, with seven acquisitions recorded compared to four in 2023. Propine was acquired by Komainu, and SolanaFM was acquired by Jupiter. Tridentity became the only company in the space to go public in 2024.
Singapore led the region in blockchain funding, with startups raising US$483 million. Hanoi and Kuala Lumpur followed, raising US$18 million and US$12 million, respectively.
Key investors in the SEA blockchain sector included NGC, Animoca Brands, and OKX. Spartan Group, Hashkey Capital, and Alliance DAO were the most active in seed-stage investments, while early-stage funding was largely driven by UOB, Taisu, and IDG Capital.
The sector has benefited from government initiatives promoting blockchain adoption, particularly in Thailand and Vietnam. Thailand is exploring blockchain for cross-border payments and supply chain financing, while Vietnam aims to become a global blockchain hub.
The Southeast Asian blockchain sector is poised for further growth, driven by increasing adoption and favourable conditions.
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