Cryptocurrencies have received $30 billion in finance and investment from venture capital firms.
In 2021, the crypto space managed to raise more than $30 billion, quadrupling the previous all-time high set in 2018. In 2018, the crypto sector attracted $8 billion in venture capital funds. According to a survey by PitchBook Data, this year’s opinion of cryptocurrencies has progressed beyond “digital gold.” The crypto market is exploding, with Bitcoin reaching a record high of 1,300 percent.
Investors are supporting “everything” and “anything” surrounding cryptocurrency, according to a PitchBook report (via Bloomberg).
“We’ve progressed beyond digital gold. “We’ve got financial services, art, gaming as a subcategory of non-fungible tokens (NFTs), Web 3.0, decentralized social media, play-to-earn — all of that made investors think ‘we don’t have enough exposure,'” said Spencer Bogart, general partner at Blockchain Capital, according to the Bloomberg report.
Crypto-related firms such as Robinhood and Revolut have raised a considerable amount of money for the crypto market in 2021.
Around $7.2 billion was invested in crypto-related ventures in the United States alone, representing a four-fold increase since 2018.
Stacked, a crypto investment platform, raised $35 million in a funding round headed by Alameda Research, a quantitative cryptocurrency trading firm, and Mirana Ventures, a crypto-startup investment firm, in December.
WOO Network, a cryptocurrency exchange platform, raised $30 million in a Series A fundraising round in October.
Candy Digital, a US-based NFT company, received $100 million in a Series A fundraising round headed by private equity companies Insight Partners and SoftBank Vision Fund in the same month.
Other findings revealed that the NFT sector has grown from a niche to a larger market, which is consistent with prior research highlighting the expansion of this digital collectibles market.
According to market tracker DappRadar, NFT sales volume increased by nearly eightfold to $10.7 billion in the third quarter of 2021, compared to the previous quarter.
The crypto ecosystem appears to be growing in numerous parts of the world, despite adoption resistance due to its decentralised nature and volatility.
In September, El Salvador made Bitcoin legal tender.
According to a survey published in September by Chainalysis, the crypto market in Nigeria, Kenya, Tanzania, and South Africa grew by 1,200 percent in a year, reaching a market capitalization of $105.6 billion.
