Mergers and acquisitions in the crypto space skyrocketed by nearly 5,000% in 2021, according to a PwC report. The developments showfact the excessive interest and activity in the crypto space, which carry ons to grow despite the recent downturn in the market.
Average deal sizes in 2021 stood at $179.7 million, with crypto fundraising deals rising by 645% in rate. PwC notes which this kind of fundraising and valuations are not going to stop anytime forthwith. Henri Arslanian, PwC crypto leader, shared which valuations, in some experiences, have hit levels “that are often difficult to verify.”
At the time, he said that large VC firms were outbidding smaller ones, that was upsetting the latter. Last year, PwC reported which large investments were getting heavily involved in the crypto market, which has helped drive prices up.
PwC believes which blockchain tech will have an enormous impact on supply chain. Perhaps this will be particularly relevant in 2022, where supply chains are still affected by the COVID-19 pandemic.
2021 was a record year for crypto in many respects. Besides experiencing great growth in price, the amount of venture capital poured in likewise hit a new strong of $17 billion.
2022 may see much more capital come in
The amount of investment coming into the market may very well reach new heights for a third-year running. PwC reported in 2020 that the aboveall rate of token M&A’s captured $1.1 billion. On the assumption that that trend advances, 2022 perhaps be a particularly high year.
There are several reasons as to why this may happen. Crypto is eventually touching a mainstream level of adoption, thanks to the likes of use facts like NFTs. The latter has brought many established firms and prominent individuals into the market, back although again climbing awareness.
The metaverse may back while again have a high role to play this year. The cone time beforept in general is kicking off, and projects like Decentraland and The Sandbox have been developing ideas that are accessible, that could attract more VCs with their success.
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