According to K33 Research, venture funding for Web3 has decreased by 80% in the first quarter of 2023 compared to the same period last year. The Block Pro's data also shows a significant drop in investment, with only $2.8 billion invested in Q1 of this year compared to $13.5 billion in Q1 of 2022.

K33 Research predicts further declines, while The Block Pro forecasts $12 billion in investment across 1,876 blockchain deals for the entirety of 2023, a 64% decrease from the previous year in funding and a 24% decline in the number of deals. The decline in funding is attributed to a loss of confidence in investment in layer one alternatives to Ethereum and projects based around the NFT and Metaverse sector.