Since the industry’s inception, cryptocurrency startups have generated approximately $100 billion in revenue.
This was reported by Bloomberg News on Saturday (June 15), citing data from two sources. Defilama The total value of the cryptocurrency sector is $101 raised $1 billion since 2014, Block ResearchSince 2017, it has recorded $95 billion in investment.
The report noted that fundraising from venture capital deals and token sales has been a major driver of the cryptocurrency industry’s growth, but the billions of dollars invested in startups have so far delivered mixed results for investors.
Paul VeraditakitManaging Partner Pantera CapitalThe $4.7 billion crypto investment firm told Bloomberg that it “definitely took longer than you’d typically expect from a traditional venture capital firm” to see any acquisitions or public offerings materialize.
He added: Coinbase $86 billion listing While exits that took place in 2021, during the most recent crypto bull market, are one notable exception, overall exits have been extremely scarce.
According to the report, crypto venture investment is expected to increase to $2.5 billion in Q1 2024, following a recent low of $1.9 billion in Q4 2023.
These investments are part of a broader Returning to the cryptocurrency industryBitcoin hit a record of nearly $74,000 in March, and while the rally has stalled somewhat, some analysts are predicting new momentum and a wave of crypto-related initial public offerings, Bloomberg reports.
Meanwhile, PYMNTS last week examined why stablecoins are “central to the cryptocurrency sector’s ambitions.” Return to original state. ”
Why? These digital assets are designed to maintain a stable value by being pegged to reserve assets such as the dollar or other fiat currencies. Advantages of Cryptocurrencies“We strive to provide superior service in many areas, including security, privacy and fast transaction times, while at the same time minimizing price volatility.”
And the landmark European Union Cryptocurrency Market Act With the MiCA stablecoin regulation due to come into effect soon, complying with the framework has become a top priority for stablecoin issuers, custodians, exchanges, and crypto advisory firms. and The same goes for cryptocurrency portfolio managers.
“By establishing clear guidelines for the operation of stablecoins, MiCA aims to mitigate the risks associated with these digital assets, including volatility and potential market manipulation,” PYMNTS wrote.
“At the same time, the introduction of MiCA comes against a backdrop where, to date, most government oversight of the stablecoin and cryptocurrency sector has been relatively theoretical.”
