According to a report from Morgan Stanley, Cryptocurrency companies received a record $30 billion in venture financing (VC) in 2021, despite the current slump in the cryptocurrency markets. December 2021, saw a record number of venture capital funds pouring money into cryptocurrencies.
Cryptocurrency investments accounted for 7% of all venture capital investments made worldwide, according to the survey results. There are still a lot of acquisitions happening in the sector
Over 1,800 acquisitions were made in 2021 as a result of record venture capital investment in the sector thanks to the plenty of US dollars and rising cryptocurrency prices, according to the conclusions of the survey. This was a 160% increase over the previous year’s average increase.
VC Funding in 2022 for Crypto Industry, on the other hand, is expected to decline in line with other venture capital categories, according to the research.
A similar trend was observed in 2018 and 2019. A type of private equity investment known as venture capital provides financial resources to new enterprises and small businesses with a significant potential for growth.
Cryptocurrency-related infrastructure and financial services, decentralized finance (DeFi) apps, and non-fungible tokens and gaming enterprises are expected to be a major focus for investors during the next two years.