Crazy investors pour money, ‘virtual’ assets receive unprecedented large capital flows of more than 30 billion USD in 1 year

According to Bloomberg, 2021 is a year when digital assets become mainstream. In fact, venture capital funds have poured about $30 billion into cryptocurrencies, more than all the previous years combined for a technology that is just over 10 years old.

Data compiled with PitchBook Data shows that the above figure has quadrupled from the previous peak of about $8 billion in 2018. This also recorded a breakout increase of 1,300% for Bitcoin.

Venture capital firms pour $30 billion into the digital asset market in 2021.

Spencer Bogart is a general partner of Blockchain Capital LLC, one of the industry’s largest investors, having invested in more than 120 companies since its founding in 2013. “We’ve come this far,” he said. more than digital gold concept We have financial services, art, games as a subcategory of NFT, Web 3.0, decentralized social media, play for money. has made the digital asset sector a potential destination for investors.”

When other companies like Coinbase Ventures, Digital Currency Group, and Polychain Capital bet on the next big cryptocurrency, all the projects being tested receive funding. It’s a social media app that turns celebrities into tokens, a game that lets players earn in NFTs – inspired by Elon Musk.

“Investors are pouring money into everything,” said PitchBook analyst Rob Le.

According to Bogart, the sudden emergence of what is considered a niche sector like the NFT has shown investors that they can miss out on anything. However, he noted that the NFT trading market is no substitute for e-commerce sites like Etsy.

The digital asset market attracted $30 billion including funding rounds conducted on Robinhood and Revolut. These are fintech companies that generate revenue through digital-related activities. According to PitchBook data, US venture capital deals also poured in about $7.2 billion, more than four times the previous record in 2018.

Number of digital asset investments made by US venture capital firms from 2016 to December 15, 2021.

For example, crypto derivatives exchange FTX closed a $1 billion Series B funding round in July, resulting in a valuation of $18 billion. Custodian New York Digital Investment Group raised more than $1 billion in mid-December, reaching a valuation of more than $7 billion. Forte, a provider of blockchain integration services for game makers, received $725 million after a funding round in November.

Meanwhile, Dapper Labs, the NFT platform behind CryptoKitties, raised $350 million in March from investors including basketball legend Michael Jordan, bringing its valuation to $2.5 billion. Cryptocurrency payment infrastructure provider MoonPay also closed its November funding round with $555 million, pushing its valuation to $3.4 billion. Sky Mavis, the developer of Axie Infinity, raised more than $150 million and recorded a $3 billion valuation in October.