Cryptocurrency VC Investments Endures 26% Decline In First Half Of 2022
- According to data published by CrunchBase, the aggregate amount of recorded investments in cryptocurrency firms within the last six months stand at $9.3 billion.
Occasioned by the lingering downturns ravaging the cryptocurrency market, venture capital investments within the last 6 months have now declined. As per emerging reports, the investments within the first half of 2022 endured a 26 percent fall.
CruchBase on Cryptocurrency Market
According to data published by CrunchBase, the aggregate amount of recorded investments in cryptocurrency firms within the last six months stands at $9.3 billion. This, when compared to the recorded amount in the first half of 2021, is $3.2 billion lower.
Reportedly, the total recorded investments in crypto firms in the first six months of 2021 were about $12.5 billion. Although the Crunchbase data acknowledged, huge growth in deal flows within the first half of 2022.
The deal flows in the past six months stand at 534, a development which appeared to be 78 times higher than the recorded deals in the first half of 2021. Apparently, the statistics depict that 2022 recorded smaller deal sizes, hence the fall in its investment level when compared to the first half of 2021.
Additionally, the data reported that the transactions recorded during the second quarter of 2022 accounted for about $4.2 billion. This, as revealed, is flat when compared to the figures recorded in a similar quarter last year.
According to a known business Intelligence firm, GlobalData, the revealing downfall in the level of investments within the first half of 2022 is caused by the global market downturns.
The firm reported that the aggregate assets within the United States declined by 22 percent in the first half of 2022. This, as reported, amounts to about $123.1 billion.
Turbulence in the Industry
Reportedly, the first half of 2022 has been a bit turbulent for projects, assets, and firms within the crypto industry. One such horrific incident was the unprecedented crash of the TerraUSD stablecoin.
Prior to the crash, stablecoin witnessed remarkable growth in the early periods of 2022. The growth, as reported, was because investors massively moved their funds from the unstable crypto space to stablecoin, a more stable space.
However, the collapse of Terra stablecoin last May truncated the growth streak of the assets. Worth noting that the awful development resulted in the loss of over 40 billion USD. This occurrence, as believed, contributed hugely to the obtainable decline in VC.
Similarly, the fall in market values of cryptocurrencies, and the prevailing liquidity turmoil bedeviling some crypto firms also contributed to the decline.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
