• Cryptocurrency firms raised $21 billion in 2022, down 42.5% from 2021.
• Most of the funding was obtained in Q1 of 2022, when the crypto industry was in much better shape.
• CoinGecko’s study shows that the 2022 funding was significantly higher than the figures in 2018, 2019, and 2020.
Cryptocurrency firms saw a major decline in funding in 2022, according to a study by CoinGecko. While the sector raised over $21 billion last year, it was nearly $16 billion less than the amount secured in 2021. This means that crypto projects obtained 42.5% less funding in 2022 compared to what they received in 2021. Despite this, the figures for 2022 were still significantly higher than the ones achieved in 2018, 2019, and 2020.
The crypto winter that hit the digital asset industry in 2022 was the main factor behind the significant decrease in funding. The market decline and the outflow of investor interest led to the halt of expansion plans for some companies. This, in turn, resulted in the lower funding for the sector. The study by CoinGecko showed that most of the funding was obtained in Q1 of 2022, when the crypto industry was in much better shape.
The study also highlighted that the venture capital investments in the cryptocurrency sector were also down in 2022. A total of $3.6 billion was invested in crypto projects, which is over 36% less than the amount from 2021. Similarly, the amount of ICOs, STOs, and IEOs decreased by over 24%, with firms raising a total of $4.4 billion in the period.
Despite the issues caused by the crypto winter, the study showed that the overall funding in 2022 was still significantly higher than the figures in 2018, 2019, and 2020. It is a sign that the sector is continuing to grow, even if it was at a slower pace in 2022. The results of the study were encouraging, as the sector has been able to remain resilient and continue to attract investors even in difficult times.