The world invested $ 30 billion in crypto in 2021; More than all previous years combined: report

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2021 has been a big year for cryptocurrencies. The cryptocurrency’s total market capitalization reached $ 3 trillion in 2021, according to a report by PitchBook Data.

The increase in market capitalization came as venture capital funds around the world invested around $ 30 billion in cryptocurrency in 2021 (through December 15). This was more than the total of all investments made in previous years in this ten-year-old technology. The second most important year for crypto investments was 2018, when $ 8 billion was invested in this digital currency.

Of that $ 30 billion investment in cryptocurrency in 2021, roughly $ 7.2 billion was raised by US-based venture capitalists. The most significant transactions that drove crypto investing to hit the $ 30 billion mark were – $ 1 billion in funding raised by the FTX crypto derivatives exchange; Custodian New York Digital Investment Group Raises $ 1 Billion; blockchain integration tool provider Forte closing $ 725 million in funding; MoonPay has secured funding of $ 555 million; and the NFT Dapper Labs platform, raising $ 350 million, among others.

A September survey by Cardify found that crypto investors invested an average of $ 263 in dedicated coin accounts, which is higher than the average of $ 250 they put in traditional brokerage houses.

Meanwhile, crypto investments have also increased in India. Although there are no hard numbers, industry experts suggest that there are 15-20 million crypto investors in the country with a total crypto holding of around Rs 400 billion. According to a report prepared by blockchain data platform Chainalysis, India

ranks 11th out of 154 countries in terms of cryptocurrency adoption.

This despite reports that the Indian government is considering banning private cryptocurrencies and introducing legislation to regulate digital currency. Some experts suggest crypto investments increased in the wake of the COVID-19 pandemic when traditional assets like currencies, bonds, and stocks became volatile.

(Edited by: Thomas Abraham)

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