The blockchain ecosystem may still be considered new. However, in terms of finance and recognition by Venture Capital (VC) firms, they are potentially nearing maturity.
According to a recent forecast from Big Four auditing company KPMG, investments in blockchain businesses in 2021 would exceed $30 billion, exceeding money obtained in 2018, 2019, and 2020 combined. In addition, investments in blockchain protocols have been consistent over the last few years, indicating that more venture capitalists are becoming aware of the opportunities in this field.
While $8.2 billion was obtained in 2018, propelled by Bitcoin’s (BTC) initial significant upward trend to an all-time high (ATH) above $17,000 in December 2017, $5.6 billion was realized in 2019, and $5.5 billion in 2020. The total transaction record in 2018 was set at 901 agreements, according to KPMG statistics, while the amount for the previous year was 1,332 deals.
The massively favorable outlook in the digital currency ecosystem has also resulted in a massive crackdown from authorities worldwide. While Chinese authorities have implemented a blanket ban on cryptocurrency, Russia has considered its regulatory approach to the rapidly developing industry.
This year has started with a tremendous positive posture in blockchain finance and investments. While organizations like FTX Derivatives Exchange led the list of crypto startups that got up to $1 billion in funding last year, the company has also secured a new $400 million deal, bringing its worth to $32 billion. Overall, present patterns indicate that investors are not prepared to slow down their support for protocols that will determine the internet’s future.