The era of Web 3.0? Venture capital funds have massively increased their investments in cryptocurrencies in 2021. The dramatic increase shows the new interest of large investors in diversified sectors.

In 2021, venture capital funds turned to cryptocurrencies

The progression is particularly clear from one year to the next: venture capital investments in the field of cryptocurrencies represented in the fourth quarter of 2020 2 billion dollars. In 2021 at the same period, this sum amounted to more than 10 billion dollars .

From one year to the next, the amounts involved have increased by +500%.

If we place ourselves on a more distant scale, the progression is even clearer, according to Messari:

“  In 2017, there was not even a billion dollars of investment in the cryptocurrency sector from venture capitalists. In 2021, the industry received 11 times that amount, in the last quarter alone .  »

There is also another sign of growing interest: the number of unique investments has increased, although less than the total sum.

The reasons for this enthusiasm

Messari points to several reasons for this strong growth. On the one hand, the cryptocurrency sector is now particularly visible, so information spreads more naturally, even among the most reluctant. On the other hand, access to these investments has been greatly facilitated , and the use cases have multiplied, as the industry has grown:

Messari reports that institutional investors traded 1.14 trillion cryptocurrencies on the Coinbase platform in 2021. That’s 10 times more than what they staked in 2020 .

It is in any case a trend that we had noted throughout the year 2021, and which seems to be accelerating. Messari reports that 70 to 80% of institutional investors intend to invest in the sector “  in the short term  ”. This shows the considerable weight that the cryptocurrency industry now has, and its particularly rapid growth in recent months.

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