Cryptocurrency funding in 2022 turned out to be 40% less than in 2021

Representatives of the digital asset aggregator CoinGecko conducted a study in which they studied investments in the field of cryptocurrencies. They came to the conclusion that in this regard, 2022 has become quite difficult for digital assets, and the results were quite obvious.

As a result, they found that in the past 2022, investors invested in digital assets by 42.5% less than in the previous 2021, which became the most successful for the world of the crypto industry.

Despite such seemingly insignificant indicators, the total capital indicates a large scaling of the cryptocurrency market. Much more money was invested in 2022 than what investors invested in 2018, 2019 and 2020.

In 2018, for the entire year, the crypto raised over $16,220,000,000, in 2019 — $4,480,000,000, and in 2020 investors invested in an amount that exceeded the $4,400,000,000 threshold. According to CoinGecko, 2022 showed that interest in the cryptocurrency space continues to hold:

Relatively better funding figures in 2022 point to the growth of the cryptocurrency industry over the past five years, supported by a large number of projects providing financial support and growing interest from institutional investors.

In 2022, the crypto winter hit the digital asset industry, which, as expected, could cause a significant decline in the cryptocurrency market and reject many investors and traders. In addition, many companies not only could dream more about their expansion, but also ceased to exist altogether.

According to CoinGecko, about $21,260,000,000 was raised in such companies, half of which occurred in the first quarter, when the cryptocurrency market was in a healthier state than in the rest.

The first collapse of the past year was the collapse of Terra (LUNA), which caused many investors and traders to lose their funds. The bankruptcies of Three Arrows Capital and Celsius Network followed. Such cases have exacerbated the mood of cryptocurrency lovers and began to even more tear away attention from the digital asset sector.

As a result, the third quarter was only able to raise $3,610,000,000, which demonstratively shows how bad investments in cryptocurrencies were going in the second half of the year.

The latest and biggest crash that went beyond the crypto industry and in some way influenced the economic component of the United States, as experts say, was the bankruptcy of the FTX exchange. This happened at the beginning of the fourth quarter, and therefore the last 3 months of 2022 were able to raise less than $3,000,000,000. Sam Bankman-Fried, who served as CEO of FTX, is still being sued. The latter is accused of implementing a well-thought-out fraudulent scheme and using client funds to pay off the debts of his second company, Alameda Research.

In 2021, over $37,000,000,000 was invested in digital assets, and the bull market and record numbers have successfully stimulated the development of investments in this industry.

Mentioning the largest receipts, it is worth noting the company Andreessen Horowitz, which is also known as a16z. The organization founded by the brothers Adeerssen attracted the largest inflow of money and received more than $4,500,000,000. The cash was promised to be distributed among various blockchain startups and investments in various cryptocurrencies.

Among other major investments, it is worth noting the following investments:

• Cathy Hawn, ex-CEO of a16z received over $1,500,000,000. The money will go to the development of Web3-technologies
• Luna Foundation Guard received $1,000,000,000 to create a UST reserve. In May 2022, the project failed. This is the same Terra (LUNA) that started it all
• Fireblock raised $550,000,000
• Immutable raised $500,000,000
• ConsenSys received $450,000,000 as part of the investment round
• Amber Group received $300,000,000. Although the company suffered from the collapse of FTX, it is fighting for its existence and is doing everything possible to continue its activities.