Crypto Sector Bagged Over $14 Billion from Venture Capital Firms in First Half of 2022: KPMG

Germany’s crypto trading platform Trade Republic emerged as the biggest crypto investor that poured $1.1 billion (roughly Rs. 8,791 crore).

Written by Radhika Parashar, Edited by Richa Sharma | Updated: 7 September 2022 19:58 IST

Crypto Sector Bagged Over $14 Billion from Venture Capital Firms in First Half of 2022: KPMG

Photo Credit: Pexels/ Roger Brown

KPMG has predicted a downturn in the crypto sector

Highlights

KPMG has named interest rate hike as a reason for crypto downturn
FTX invested $500 million (roughly Rs. 4,000 crore) in crypto
ConsenSys poured in $450 million (roughly Rs. 3,600 crore)

The crypto sector saw the successful completion of 725 deals in the first half of this year. So far in 2022, the industry has bagged investments of $14.2 billion (roughly Rs. 1,13,500 crore), a new report by KPMG has claimed. The organisation is among India's renowned providers of risk, financial, and business advisory. As part of its new findings, Germany's crypto trading platform Trade Republic emerged as the biggest crypto investor that poured $1.1 billion (roughly Rs. 8,800 crore).

Among the top four investors in crypto projects, Fireblocks digital asset custody platform contributed $550 million (roughly Rs. 4,400 crore) and secured the second spot on the index of largest investors in digital assets.

FTX crypto exchange and Ethereum software firm ConsenSys scored the third and fourth spots with the investments of $500 million (roughly Rs. 4,000 crore) and $450 million (roughly Rs. 3,600 crore), as per KPMG findings.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

The report has highlighted that crypto-centric investment figures for the first half of 2022 alone has doubled all years prior to 2021.

“(This) highlights the growing maturity of the space and the breadth of technologies and solutions attracting investment,” the report said.

KPMG: investments in crypto-companies since the beginning of 2022 = $14.2 billion (725 deals) pic.twitter.com/iiV4bZpZIT
— NekoZ (@NekozTek) September 7, 2022

KPMG's report comes at a time when Mike Kondoulis, an intellectual property lawyer from the US, has claimed that the blockchain sectors have swelled majorly. He said that over 3,600 trademark applications around the sectors of cryptocurrency, Web3, metaverse, and non-fungible tokens (NFTs) have been filed so far this year in the US as of August 31. The number of trademarks filed around these industries stood at 3,516 in all of 2021.

Despite the progess, however, KPMG has warned of an approaching downturn in the crypto industry.

Trademark Applications Around Crypto, Web3, Metaverse, NFTs Rise in US

Looming political recession, economic climate of inflation, and hikes in interest rates are named as reasons why the crypto sector will suffer negative impacts in the coming times.

Even presently, the total market cap of the crypto sector is below the trillion-dollar mark. As per CoinMarketCap, the total crypto valuation stands at $939 billion (roughly Rs. 75,03,800 crore), which had exceeded the mark of $3 trillion (roughly Rs. 2,39,72,100 crore) last year.

KPMG, meanwhile, expects crypto-centric investment efforts to pick pace in underdeveloped fintech markets, particularly in Africa.

Binance crypto exchange is already in talks with Nigerian authorities to establish a crypto-focussed special economic zone that would incubate related startups and businesses in the region.

With the next Apple event due very soon, we dive into all the leaks and rumours surrounding iPhone 14 on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Cryptocurrency, Trade Republic, Fireblocks, FTX, Crypto Exchange

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More