Cryptocurrencies Bagged Over $17 Billion in VC Investments in 2021, And We're Only Halfway Through the Year
2021 has been the year of crypto. From its meteoric rise to its recent volatile swings, there’s no denying that crypto has made headlines week after week for creating and demolishing fortunes, often with billionaire Elon Musk somehow involved. But now crypto is making headlines for another reason entirely.
According to market data company PitchBook, cryptocurrencies have secured over $17 billion (about P828 billion) in investments from venture capital funds in 2021—and the year isn’t even over yet.
With still six months to go, cryptos have already made 2021 the year the biggest amount of investments has ever been made in the history of cryptocurrencies. Prior to 2021, 2018 was the year of the highest amount of crypto investments, recorded at an estimated $7.4 billion. That is, until this year blew all previous years out of the water with a total half-year investment that’s about the same as all the investments from 2010 to 2020 combined.
More than half of 2021’s current crypto investments came from one giant deal: a $10 billion investment from Block.one in crypto exchange Bullish Global. Block.one is a blockchain software company whose investors include Peter Thiel, the co-founder of Paypal and first investor of Facebook. Bullish Global is an upcoming crypto exchange.
Other notable investments so far include $380 million injected into crypto wallet Ledger, $350 million invested in BlockFi and Dapper Labs, and $300 million invested in Paxos and Blockchain.com.
Cryptocurrencies continue to be a point of controversy among traders, investors, and financial experts, with everyone debating on whether the volatile asset will eventually crash and burn. Despite all the opinions, it’s clear that money is talking and crypto’s $17 billion investment is saying one thing: crypto is here to stay.