The second-biggest year for crypto investment was in 2018. At that time, around $8 billion investment went into digital currencies.
The amount of money invested in crypto in 2021 is proof that digital assets went mainstream this year. A survey revealed that crypto attracted more money in the year 2021 compared to all past years combined. As cryptocurrencies and projects increase in popularity, several digital assets also reached remarkable highs. As institutions adopt cryptos, retail investors also put their funds into different types of crypto assets.
About $30 Billion Invested in Crypto in 2021
In 2021, venture capital funds have invested about $30billion into crypto. The record shows the amount imputed into crypto by venture capital funds from the beginning of the year till the 15th of December. According to transaction data compiled by PitchBook Data Inc, the total market valuation of crypto skyrocketed to $3 trillion in 2021. This impressive growth came despite the crypto ban in various countries, including Nigeria. Crypto investments also surged in India despite the fact that the government is planning to ban private coins. Although there are no exact figures, experts stated that there are about 15.20 million crypto investors in India. The industry experts further said that the total crypto holdings in India are up to $Rs 400 billion.
At the same time, the China crackdown on virtual digital assets shook the crypto space. Regardless, the total market cap of all cryptocurrencies came out strong. Now, it is safe to say that 2021 is the biggest year for crypto so far.
The second-biggest year for crypto investment was in 2018. At that time, around $8 billion investment went into digital currencies. This shows that the 2021 investment is almost quadruple of the previous high of 2018. About $7.2 billion of the $430 billion investment in crypto in 2021 can be attributed to US-based venture capitalists. Some of the activities that influenced the $30 billion mark include that $1 billion funding raised by FTX. Additionally, Custodian New York Digital Investment Group also secured $1 billion. Blockchain integration tool-provider Forte also recorded a $725 million funding. MoonPay secured some $555 million financing while NFT platform Dapper Labs generated $350 million. All these funds, including many others, contributed to the $30 billion crypto investment recorded in 2021.
NFTs Major Adoption in 2021
Emphasizing the position that NFT currently occupies, Spencer Bogart explained that OpenSea, which was formerly unknown, is now a top NFT marketplace and can be compared to eCommerce marketplace Etsy.
Bogart, a general partner of Blockchain Capital, one of the industry’s biggest investors, commented:
“We’ve moved beyond just digital gold. We’ve got financial services, art, gaming as a subcategory of NFTs [non-fungible tokens], Web 3.0, decentralized social media, play-to-earn – all of that made investors think, ‘We don’t have enough exposure.”
A further proof that investors are putting more commitment into cryptocurrencies than traditional brokerages is evident in a survey by Cardify. The study showed that investors put an average of $263 in accounts linked to coins. On the other hand, the same investors put an average of $250 in traditional brokerages.