Venture capitalists are closing in on the crypto space following the frequent crypto investments during 2021 from institutional buyers like MicroStrategy last year.
The commitment from Venture capitalists has ramped up recently as investments in the crypto space have increased for crypto businesses and blockchain startups in 2021. According to recent data, crypto startups have secured more grants in the first quarter of 2021 than all of 2020 collectively
As reported by Bloomberg, 129 cryptocurrency trading platforms received a total of $2.6 billion in investments during the first quarter of 2021, using data from analytics firm CB Insights. Crypto and other blockchain companies generated $2.3 billion in 341 transactions throughout 2020, in comparison.
Despite the notable figures from 2021 so far, 2018 remains a record year for crypto-based startups in terms of investment volume. The industry received $3.3 billion in funding in 2018. The promising trend is likely to reach new highs with venture capitalists demand for crypto related options set to continue.
According to CB Insights, the influx of funding in 2021 so far, was primarily fuelled by three organisations, BlockFi an United States based lending Startup; Dapper Labs, a Canadian blockchain game developer and Blockchain.com, wallet provider and block explorer. This year, the three companies received investments totaling approximately $1.1 billion.
BlockFi reached contributions totaling $350 million in funding round spanning March this year and Blockchain.com received $300 million in March following its $120 million funding round in February. Additionally, Canadian fintech company Dapper Labs has recent launched Ethereum-based games supporting NFT integration including CryptoKitties and NBA Top Shot, raising $305 million primarily consisting of funds from venture capitalists in the first quarter of 2021.
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