Europe seems to be bucking the declining trend in global blockchain venture funding in the second quarter. According to a recent report from The Block Research, Europe recorded a 25% increase in funding in the April-June quarter compared with the previous three months.
Europe’s gain is significant when compared to a 43.4% fall witnessed in Asia and a 23.8% decline in the US in the funding space during the second quarter.
To put things in perspective, global blockchain venture funding in the second quarter declined by 22% to $ 9.8 billion from $12.5 billion during the January-March period.
Yet, US retains the top spot in total funding
Despite the 23.8% decline, the US retained the top spot in total funding deals, with blockchain startups raising $5.4 billion compared to Europe’s $1.8 billion. Apart from Europe, Africa was the only other region that has witnessed strong VC funding participation, with a 189% increase in funding compared to the previous quarter. In Asia, blockchain startups raised close to $1.79 billion.
M&A deals soar on attractive valuations
Merger and acquisitions (M&A) deals have increased amid the turmoil in the crypto market. In the first half of 2022, 212 M&A deals were completed, compared to 204 deals last year.
According to the report from The Block Research, M&A transactions are likely to continue to increase because of the current market conditions.
John Dantoni, a researcher at The Block Research, commented: “Since the private markets have started to cool off, M&A activity within the sector will be worth following over the next few quarters.”
“The valuations for private firms have been and will likely continue to re-adjust to the current market environment. As a result, we expect to see M&A activity increase, particularly by larger firms in the industry,” Dantoni added.
