Venture capitalists (VCs) invested a record $6.5 billion in crypto in the 3rd quarter of 2021. The U.S. continued to lead the world in VC funding into the crypto industry, investing a record high of $2.97B, followed by Asia with $1.4B invested, and Europe with $1.1B.
In all of 2020, VCs invested about $4.3B in blockchain/crypto. Therefore, $6.5B in one single quarter alone is incredible. And it’s important to remember this $6.5 billion number certainly understates how much was actually invested. A lot of funding in the crypto space is done using Ethereum, Bitcoin or other coins. No data service can possibly capture all the deals happening.
The institutional “Fear Of Missing Out” (FOMO) is starting to hit. Everyone is rushing to get more exposure to crypto. So, this bull run still has big legs to walk on. Bitcoin might be the safest way and the best long-term inflation hedge. But here is some truly incredible innovation happening in the decentralized finance space that should not be ignored.
Sven Franssen