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European crypto startups raised a record $5.7 billion in VC funding last year, up from $5 billion in 2021, according to the latest State of European Crypto VC Funding report. The investment cycle followed the global trend of peaking in the second quarter and declining sharply in the first quarter of this year. Web3 remained a key sector of interest, while the fastest growth category was infrastructure, including developer tooling, blockchain scalability products and layer 1 blockchains.

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