The Value of Crypto M&A Deals Skyrocketed by 4,846% In 2021
According to PwC, the value of crypto-related deals rose by 4,846% in 2021. The report also detailed that crypto fundraisers increased in value by 645% from 2020. Additionally, about 50% of these deals were done in the American region.Â
Cryptocurrency M&A Deals Gain Value by 4,846% In 2021
PwC, a world leader in professional networks services provision, recently reported that the value of crypto deals increased by 4,846% in 2021. It said that M&A deals and crypto fundraisers have skyrocketed in value together with crypto-related mergers.
The total value of the deals done throughout the year hit an average value of $179.7M compared to the $52.7 M of 2020. The American region contributed over half of last year’s total global cryptocurrency deals. The report also explained that crypto fundraisers have also risen significantly throughout the year.
The report explained that crypto M&A deals of last year eclipsed 2020 by 50X. The first ten largest crypto M&A deals of 2021 also increased exponentially. The year also had numerous deals capped at over $1B, while 2020 had no such deal.
The year also saw major companies and organizations hoping into the crypto space through large deals showing that the technology is maturing progressively.
Major Institutions Contribute Highly in Crypto M&A Deals of 2021
2021 will remain one of the most significant years in the history of cryptocurrency. It was the first year where major M&A deals involving significant companies and firms happened.
Firms like FTX crypto exchange, Sorare, and NYDIG shook the crypto space by spearheading record-breaking fundraisers. NFTs and the metaverse also stole the show by attracting numerous venture capitalists and other deals.
Global organizations and companies were the main contributors to the impressive growth rate of crypto deals. These companies were involved in significant acquisitions and mergers, with the top 10 M&A deals hitting the $1B mark.
The first four deals in the top 10 had a cumulative value of $19.4 B. The top 10 list crypto deals of 2021 also had an average value of $3.3B, larger than Binance’s coinmarketcap acquisition of 2020. The top five contributors in the deal count were:
- AU21
- Genesis
- Block Ventures
- Genblock Capital
- Coinbase Ventures
According to PwC crypto leader Henri Arslanian, there are no signs of crypto fundraising dwindling anytime soon.
Metaverse, NFTS, and Digital Payment Deals Shook the Crypto Space in 2021
Last year was one of the most bullish years in the history of cryptocurrency. Almost every coin broke its ATH on several occasions. The adoption rate was also over the roof, with nearly every coin setting ATHs in their daily active addresses. Additionally, other unique projects like the metaverse, NFTs, and Web3 cropped up and attracted the attention of many.
Different investors ranging from institutions to individuals showed their urge to join the crypto sphere through NFTS and the Metaverse. Some of the biggest deals came from institutions seeking to invest in these projects. Companies like Adidas, Meta, Adidas, and Nike struck major deals related to NFTs and the metaverse.Â
Other digital payments companies like Flutterwave, Verifone, Bitpay and PayPal also struck many blockchain-related deals.Â
These developments are encouraging since they show investors’ growing faith in the crypto sector. They show that the industry may grow significantly over the next few years. However, it’s best to DYOR before investing in crypto projects since not all projects might succeed.
