The consolidation of cryptocurrency-related firms surged massively in 2020, hitting a brand new file in deal exercise, in keeping with a brand new report by skilled providers community PwC.
The entire quantity of mergers and acquisitions within the crypto business greater than doubled from $481 million in 2019 to $1.1 billion in2020, PwC mentioned in a Monday market overview, as seen by Bloomberg.
The typical deal dimension in crypto surged from $19 million in 2019 to just about $53 million, with crypto fundraising growing 33% in general worth in 2020. International locations within the EMEA area noticed a notable spike within the variety of offers, whereas the Americas recorded a threefold progress in deal worth.
Following new highs final yr, deal exercise within the crypto business is prone to proceed rising in 2021. PwC international crypto chief Henri Arslanian mentioned that 2021 is “already on observe to considerably surpass it from each single metric” as institutional gamers and high-profile buyers are shifting into the business.
Alongside better consolidation in crypto, PwC additionally predicted that the business will grow to be extra institutionalized. The survey reportedly cited main positive factors within the crypto market — with Bitcoin hitting its all-time excessive of over $61,000 in mid-March — in addition to the rising adoption of central financial institution digital currencies, stablecoins, decentralized finance and non-fungible tokens, also referred to as NFTs.
As beforehand reported by Cointelegraph, main international cryptocurrency exchanges like Binance, FTX and Coinbase made the highest three acquisitions within the crypto business in 2020.