Companies in the crypto world have raised $21 billion in 2022, according to a survey by blockchain data platform CoinGecko and information from the DeFi Llama website. Even though the number is down 42% from what it was in 2021 thanks to a bear market dubbed “crypto winter,” the value could still be very important for the sector.
In 2022, the data shows that investment in cryptocurrency companies shrank quarter over quarter (QoQ). $8.72 billion raised in the first quarter (-41.8% qoq) after an exceptionally strong fundraising performance in the fourth quarter of 2021.
In subsequent quarters, investment declined, as companies increased incrementally less by $5.92 billion in the second quarter (-32.0% qoq), $3.61 billion in the third quarter (-38.9% qoq) and finally $2.99 billion in the fourth quarter (- 17.1% quarterly) ).
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If in 2021 investing in companies with cryptocurrencies as their main business broke a record of $37 billion, the next year that number dropped to $21 billion, along with the quotation of major cryptocurrencies in what became known as In the name of “Cryptocurrency Winter” “.”.
Bitcoin, the world’s largest cryptocurrency, is down about 65%, for example, and the sector’s capitalization has gone from trillion levels to around 800 billion.
In contrast, the first quarter of 2021 started with an increase of $5.58 billion (+229.2% for the quarter). The significant growth of the industry was clearly reflected by the increased amount of money flowing into crypto companies each quarter: Q2 2021 saw an increase of $7.43B (+33.2% QoQ), followed by $8.99B in Q3 (+20.9% QoQ). annualized), and ended the last quarter of the year on a high of $15 billion (+66.8% qoq).
While 2022 was marked by negative developments both inside and outside the crypto market, investors expect 2023 to be different. Data from CoinGecko’s study can help contribute to this prediction, because even in the fall, investing in crypto companies was better in the past year than in the most recent bear markets, both in 2018 and 2020.
The year 2022 witnessed a series of problems of global scale, such as high inflation rates, wars, and bankruptcies of major companies such as FTX. However, this wasn’t the first “crypto winter” the industry had to contend with, and it didn’t seem to be the worst either.
By comparison, the previous crypto winter caused a sharp drop in funding, with companies raising just $4.48 billion in 2019, or down 72.3% from the $16.22 billion raised in 2018. $4.40 billion in total, according to information from CoinGecko and DeFi Llama. .
With this, it is possible that investors will resume optimism in 2023, encouraged by the relatively better performance in 2022, as this may indicate the growth of the cryptocurrency market in the past five years, supported by more projects that guarantee financial support and increase investor institutional interest.
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