Venture capital funds poured a record $30 billion in crypto investments in 2021. Looking at the number, it is safe to assume that 2021 is indeed the year for crypto.
According to transaction data compiled by PitchBook Data, a financial software and data provider, the $30 billion in crypto investment is almost quadruple the previous high of around $8 billion in 2018.
Where Did This $30 Billion Funding Come From?
The most significant transactions that led the crypto investment to touch the $30-billion mark were:
- About $7.2 billion of the $30 billion investment in cryptocurrency in 2021 was raised by venture capitalists in the United States.
- $1-billion funding raised by crypto derivatives exchange FTX.
- Custodian New York Digital Investment Group raised $1 billion.
- Blockchain integration tool-provider, Forte, closed a $725-million funding.
- MoonPay secured funding of $555 million.
- NFT platform Dapper Labs raised $350 million.
These are just a few among others. In India, startups have raised $511 million in 2021. Most of the money went into crypto startups, mainly exchanges, which have raised as much as $448 million.
What is Driving Investors to “Anything And Everything” Crypto?
Are investors just funding anything and everything crypto driven by FOMO? Crypto adoption really became mainstream in 2021. Even high profile people like Melania Trump launched her first-ever NFT on the Solana Blockchain, and Michael Jordan invested in Dapper Labs, ventured into the crypto space in 2021.
There were many developments in the crypto space – “We’ve moved beyond just 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,'” Bloomberg quoted Spencer Bogart, a general partner at investment venture firm Blockchain Capital.
Here are some major things that happened in the crypto space in 2021, proving that 2021 really is the year digital assets become mainstream.
- El Salvador became the first country to adopt Bitcoin as a legal tender and created a Bitcoin city.
- Barbados became the first country to launch its virtual embassy Decentraland(MANA).
- Facebook rebranded to Meta, leading to the increasing interest in the metaverse.
Meanwhile, in India, crypto investments have spiked, with a total crypto holding of around ₹400 billion. While there are no solid numbers, industry experts suggest 15-20 million crypto investors in the country. With all these numbers, India ranks 11th out of 154 countries in terms of cryptocurrency adoption, according to a report published by blockchain data platform Chainalysis.
The spike in crypto investment despite the bill postponed to the Parliament’s winter session shows that the country is ready to welcome progressive regulations on crypto in the country.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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