In 2020, the total volume of venture capital funding in the crypto industry is estimated at $ 3.1 billion in 774 transactions. The most important acquisitions are CoinMarketCap, Blockfolio and Tagomi.
Impact of the COVID-19 pandemic
The COVID-19 pandemic results in a 61% reduction in funding in the first and second quarters. However, throughout 2020, venture capital participation remains stable. Write The block.
This year, there are 83 merger and acquisition (M&A) transactions totaling $ 691 million. This is 28% more than a year ago. This is the highest rate in the history of the crypto industry.
Binance acquired the CoinMarketCap market data aggregator this year. Observers and insiders estimate the transaction at $ 400 million, or about 58% of total M&A deals for the year.
Binance CEO Changpeng Zhao says his company makes 30 to 50 acquisitions every year. Binance does not disclose the details of most of these transactions.
Mergers and acquisitions in the crypto industry
As of 2018, there are 54 mergers and acquisitions in the crypto industry for a total of $ 559 million. The biggest deals of the year are Circle startup’s acquisition of the Poloniex stock exchange for $ 400 million. So, this is the same as Coinbase buying the Earn project for $ 120 million.
For all of 2019, there are 125 acquisitions with a total value of $ 481 million. Note the acquisition of the crypto-derivatives platform Crypto Facilities by the Kraken exchange and the purchase of Xapo by Coinbase.
Recall that in the first half of 2020, there are more acquisitions of crypto and blockchain startups than in the relatively prosperous 2019 as a whole. Investors are starting to focus less on the start-up and seed phases. And, however, activity is shifting from North America to Europe and Asia.
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