Total Crypto Fund Raised In 2022 Drops By $16 Billion Compared To 2021
In comparison to 2021, 2022 saw a significant decrease in the amount of funds raised. This saw a 40% decline from a peak of almost $37 billion of funds raised in 2021 to just $21 billion in 2022.
Drop In Funds-Raised For 2022
The cryptocurrency market experienced a severe bear market in 2022, which led to a decline in demand and a drop in price. Additionally, this had a negative impact on business development plans and resulted in substantial losses for investors.
The $22 billion actualised in 2022, according to an analysis report, occurred primarily in the first quarter of the year while the cryptocurrency market was still booming.
The market was tragically affected by the numerous bankruptcies and collapses, including those of Terra Luna, and ultimately the FTX. This resulted in a severe crypto winter.
The FTX collapse had a significant impact on these fundraising efforts because the majority of the companies suffered liquidations and weren’t even worth $2 billion.
Over $36 billion was raised in 2021, with a number of factors playing a role in this high total.
Many cryptocurrencies reached all-time highs that year, with Bitcoin reaching a high of $69,000 and Ethereum reaching the $3,000 mark; the cryptocurrency market was in very good shape, so it was easy to raise that amount of funds.
Despite the decrease in total funds raised for 2022, last year was far superior to the funds raised in 2018 to 2022. This three-year period saw a total fund raise of no more than $26 million, however, with 2022 alone raising $22 million.
This increase and gap indicate that the crypto industry has been developing and evolving over the last four years; Showing more activity and profit in the space for industries as well.
Remarkable Donations And Fund Raised
Andreessen Horowitz received a donation of about $4.6 billion for his company in the second quarter of the year, which is one of the notable donations from major corporations for the fund-raising campaign.
During the crypto winter, the company aimed to distribute these assets among various businesses and emerging firms while also stockpiling digital assets.
Katie Huan, who received donations totaling about $1.5 billion in the first quarter of the year, was another significant fund-raiser. These funds were intended to assist web3 startups and crypto organizations.
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