Value of Crypto Deals Soared Almost 5,000% in 2021 -Breaking
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In 2021, the value of crypto deals has risen to almost 5,000%The cryptocurrency sector saw unprecedented growth last year, with new milestones in mergers and acquisitions. The total value of crypto M&A deals done within 2021 skyrocketed by almost 50x compared to 2020.
According to the most recent PwC report value of cryptocurrency-related transactions grew in line with the overall growth trend in crypto markets. It jumped up 4,846% in 2017
Average deal size increased three-fold from $52.7million to $179.7million. This was mainly due to the many special-purpose acquisition companies (SPAC), deals that were valued over $1 billion. This size contract was not available in cryptocurrency markets a year prior.
“We saw larger and more developed crypto companies becoming more active in M&A, a sign that the crypto industry continues to mature and consolidation is beginning to occur,” says PwC.
Besides the high M&A activity of crypto and blockchain companies, crypto-focused venture capital funds (VCs) became the biggest driving force last year, which generated 26% of the total M&A deal activity.
With a 10% increase (51%) in activity compared to last year, the Americas were seen as the most active region for crypto mergers. Within 2021, there was a slight decrease of activity (33%) in Europe, Middle East, African and African countries.
The deals are nearly equal in terms of value between the American and EMEA regions ($24.5M), respectively.
Most Popular M&A Sectors
According to PwC, the split of crypto acquisitions and mergers is more even than in previous years. The report identified that cryptocurrency trading was the main change, with contract activity decreasing from 43% in 2018 to 27%.
Apart from that, other cryptocurrency sectors haven’t witnessed any significant changes. Mergers and acquisitions also occurred in crypto-related solutions (21%), blockchain and infrastructure (19%), and other (19%) sectors, while crypto mining-related contracts accounted for 15% of total M&As deals.
PwC states that this diversification is a sign of greater adoption of cryptocurrency services and highlights the ongoing maturity of digital asset spaces.
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