Even since crypto has made inroads in nations, the younger population is looking at it as an alternative to banking & financial institutions that provide the same results, but in a totally decentralized manner.
From 2009 until date, Bitcoin has led the crypto and blockchain sector without ever being hacked or having any issues with Bitcoin’s blockchain.
This success has added to the popularity of crypto among the masses and has also attracted institutional investors with billions in investment.
Bitcoin is just one of over 17,000 crypto projects on the market today. Additionally, there are various blockchain companies that are solving problems such as logistics, land registration, digital certificates, and more.
Investments have been moving slowly since 2010, but after 2018, there has been a big jump in crypto and blockchain projects.
Today, the overall crypto market is hovering around $2 trillion. Bitcoin commands a 42.2% share with $839 billion and Ethereum share is around 19% with $379 billion, while the balance is shared by other tokens. A few months back, the market nearly touched $3 trillion.
While older projects have provided four to five times the return in 2021, other crypto projects such as Solana have provided over 11,000%, Fantom has provided over 13,000% and Avalanche has provided over 3,330%.
All this has made investors search for new crypto projects with solid use cases for investment and for higher returns.
Over $30 billion invested into crypto in 2021
As reported by PitchBook Data, crypto investment in 2021 reached over $30 billion, a significant increase from just $8 billion in 2018.
Various crypto companies have been raising funds in order to expand their reach. This comes after many nations have been giving positive signals that crypto cannot be banned and there is a need to regulate it.
Governments are trying to speak to crypto project developers, exchanges that can directly address government concerns that crypto can become currency for all illegal activities, money laundering, terrorism.
Of the $30 billion raised in 2021, $7.2 billion was invested by US-based venture firms across various crypto projects. Projects from payment, NFTs, and crypto exchanges raised millions in just one go, making it one of the most happening investment zones in 2021.
The sector is seeing a massive rise, even after China decided to ban all crypto and even decided to shut down all Bitcoin mining companies.
However, positive news came from India, which decided to impose a 31% tax on crypto that ended all speculations that India is looking for a complete ban.
Experts do believe that it is very early to celebrate, as the Indian government is yet to pass the Cryptocurrency bill, which has been pending for a few months now. Many media reports speculated that India will completely ban crypto, as the Reserve Bank of India (RBI) feels that it can damage the economy, as all the crypto projects are pegged against the US dollar, not against the Indian rupee.
Russia has also given a green signal on crypto, various nations are considering allowing crypto as another avenue of financial investment in the months to come.
Recently, one of the biggest bankers based in the US, JP Morgan has decided to enter the metaverse space and said that this can be a $1 trillion market opportunity.
With all these developments, investment in crypto and blockchain is set to rise once again and it can even cross $50 billion in 2022.