2021 saw more funds poured into crypto than all previous years combined

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Despite the ups and downs in cryptocurrencies this year, this record investment rate is proof that the industry is heading towards widespread adoption.

According to venture capital transaction data compiled by PitchBook.com, this year has been a banner year for investing in cryptocurrencies, non-fungible tokens, decentralized finance, gaming and other new ventures. blockchain-based, as first reported by Bloomberg.

Record year for crypto

According to several indicators, this year has been a record for the blockchain and crypto industry.

Established in 2009, the crypto industry is just over 12 years old. The two biggest projects by market cap, Bitcoin and Ethereum, both hit record highs in price per coin in October of this year and the market capitalization of the entire crypto space topped $ 3 trillion. before coming back.

In addition, data from DappRadar, a company that tracks sales of non-fungible tokens (NFTs), showed that NFT trading reached $ 22 billion in 2021, compared to just $ 100 million for the whole of the world. ‘last year. While the Metaverse has been gaining traction since Facebook rebranded itself as Meta and laid out its plans to invest billions in creating an immersive internet experience for its users.

Record levels of venture capital investment in 2021

According to PitchBook data, venture capital (VC) fund investments in 2021 topped $ 30 billion, which is more than any previous year since crypto was conceptualized. This was nearly four times the previous peak of around $ 8 billion in 2018.

Most of the venture capital funding came from U.S. investors who contributed $ 7.2 billion between January and mid-December. The FTX cryptocurrency and derivatives exchange was the biggest beneficiary, raising $ 1 billion in a single round of funding.

This year has also seen several double-digit price swings – with a drop of over 50% in just a few days. Despite these ups and downs, investing by venture capitalists is a strong and positive bet for the future of blockchain and crypto. It also marks an important precursor to wider mass adoption.

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