Is crypto an empty hype ? This question is visibly leaving investors’ minds, as investments continue pouring into crypto: from $5.5 billion in 2020 to $31 billion in 2021… with a real possibility to hit $60 billion in 2022 ?
A recent report by Cointelegraph and Keychain Ventures shows that the first half of 2022 has already generated over $29 billion, despite a noticeable decrease following the market crash in May.
Crypto venture funds have been growing steadily: this year A16z raised an additional $6.7 billion, Sequoia – $2.35 billion, and newly founded FTX Ventures raised $2 billion.
? What part of the crypto industry has the most potential ? is the new question most investors should ask themselves.
Most crypto investment can be put into one of the 5 main categories:
➡️ DeFi (decentralized finance),
➡️ CeFi (centralized finance working with crypto products),
➡️ NFTs (platforms with NFT-focused value proposition),
➡️ web3 (platforms integrating crypto tools to decentralize different aspects of their operations), and
➡️ infrastructure (blockchains and related activities).
So far in 2022, web3 is a clear winner with over 34.2% of investment, followed by DeFi (19.6%), infrastructure (16.7%), NFTs (15.6%) and CeFi (13.2%).
? Crypto and traditional online services continue to merge.
➡️ Coinbase acquiring FairX, a CFTC-regulated derivatives exchange, allowed it to start offering new products to the US customers.
➡️ Algorand and Hivemind aim at creating a new web3 music streaming business by acquiring Napster.
➡️ eBay plans to reinvent itself with the NFTs, buying KnownOrigin NFT marketplace…
The old world opens itself to crypto innovation, while crypto is taking advantage of its previous achievements.
The investments of today shape the industry of tomorrow, and the state of crypto investments is rather encouraging.