Skip to main content

European DeFi startups saw 120% increase in VC investment in 2022: Data

Despite the ongoing tumultuous market conditions, VC investments in European crypto startups hit an all-time high of $5.7 billion in 2022.

2022 was a turbulent year for the crypto space, to say the least; from an ongoing bear market and crash for LUNA to the downfall of FTX one of the industry’s most prominent players. Despite the setbacks, VC investors continued to show support for crypto startups.

According to a new study released by European investment firmRockawayX, VC investment in crypto startups based in Europe reached its all-time high in 2022 with $5.7 billion invested

European DeFi Startups hit $1.2 billion in 2022, which is a 120% increase from the previous year’s Investments of $534 million

Viktor Fischer, the CEO of RockawayX, pointed out that the crypto market is cyclical and during the 2018 winter, “the total digital asset market cap fell by 80%, but startup funding activity held steady.”

“Investments made when digital asset prices were depressed materialized in tech and usage traction alongside ‘bull market’ price recoveries.”

Europe is also home to the highest number of crypto startups (3,977), according to the headquarters location.

However, it begins to fall behind the United States regarding the number of startups backed by VC investors, those with over a million dollars in funding and unicorns. 

Cumulative number of crypto startups by HQ location. Source: RockwayX

Top global investors in European startups include Animoca Brands, Coinbase, Blockchain Capital and the Digital Currency Group. 

Related: Banking crisis pushed over $286B to money market funds in two weeks: Report

In Europe, investment in startups which provide financial services made up more than half (52%) of all investments, with infrastructure and Web3 making up 32% and 16% respectively.

Crypto VC investment by sector in Europe (2022). Source: RockawayX

However, when compared with the year prior investment in financial service-based startups declined by 19% and infrastructure grew by 24%.

Europe’s growing prominence as a crypto-friendly region comes as regulators in the European Union finalize their highly-awaited MiCA regulations. 

The final result of the regulations have been postponed two times by the EU, both times due to translation issues. Regulations passed in the EU must be translated into all 24 languages of the member states.

At the time of writing, the release of the MiCA rules are anticipated to be released in April 2023.

Magazine: Crypto winter can take a toll on hodlers’ mental health

Comments

Post a Comment

Popular posts from this blog

Shiba Inu: Here's How Much SHIB Can Rise in 2025

Image
Shiba Inu (SHIB) has a lot of expectations tied to its protocol. Countless individuals are invested in the project, in the hopes of becoming wealthy. However, is the asset going to deliver again? That remains a question only time will answer. At the moment, experts at Finder have given their opinion on how SHIB may perform till the year 2025. According to a survey, Shiba Inu (SHIB) is anticipated to reach $0.00004930 by the year 2025. The panel included 55 fintech specialists. Source: Finder Among the panelists, some are more optimistic about SHIB than others. According to Alexander Kuptsikevich from FxPro, SHIB could reach upto $0.0001 by 2025. Yet, Kuptsikevich did say that “It is unlikely to roar as it did in 2021.” Nonetheless, he did add that SHIB “can ride the future waves of the crypto market.” Will Shiba Inu actually reach $0.00004930? It should be noted that the survey was conducted in October 2022. Since then, SHIB has unveiled a lot more projects and initiatives that co...
Read more

Twitter thread shows Coinbase’s servers may be compromised

A Coinbase user recently shared a Coinbase-related scam story indicating that the exchange’s servers might be compromised . Jacob Canfield, a YouTube host and bitcoin enthusiast, claimed he received a text message about a changed two-factor authentication (2FA) setting on their Coinbase account. Shortly after, he got three phone calls from an individual claiming to be a Coinbase customer support representative. The calls originated from a San Francisco number, adding to the illusion of legitimacy. Holy shit. I just got attacked with one of the most complex scams in #crypto that I have seen to date. Please read if you use @coinbase. This just happened 15 minutes ago. THIS IS A WARNING FOR ALL COINBASE USERS! There has been some sort of a data breach. First, I… pic.twitter.com/aOVWLpAtY4 — Jacob Canfield (@JacobCanfield) June 13, 2023 During the calls, the impersonator asked whether Canfield was traveling outside the US and whether he had requested changes to the email ...
Read more

Bitcoin skeptic Charles Schwab bank deposits down 30% YoY, while BTC is up 50%

Image
The Charles Schwab Corp. (NYSE: SCHW)  is among the most affected financial firms facing a drop in customer deposits due to the increased interest rate environment in the United States, according to its Q3 2023 report. This presents a real challenge for a company that relies primarily on clients’ uninvested cash to fund its interest-earning businesses. Charles Schwab’s consumer bank deposits tumbled 28% year-over-year (YoY), causing its net interest revenue to drop 23.5% in the third quarter, which also negatively affected its quarterly revenue of $4.61 billion (-16.2% from Q2). A recent post on X (Twitter) by the event-driven trader Gurgavin Chandhoke highlights Charles Schwab as the financial company with more accumulated losses in bank deposits since Q3 2022. BANK DEPOSITS OVER THE LAST 1 YEAR BMO UP 21% AMERICAN EXPRESS 20% SCOTIABANK UP 9% CIBC UP 4% RBC UP 3% JP MORGAN DOWN 1.2% CITI DOWN 2.5% GOLDMAN DOWN 2.5% TD DOWN 2.6% BANK OF AMERICA DOWN 3% WELLS FARGO D...
Read more