A less marked red – CoinGecko takes stock of the fundraiser by cryptocurrency companies in 2022. In this area, the sector has certainly underperformed compared to the previous year. However, another pattern emerges when the analysis is done over a much longer time scale.
A drop in fundraising to qualify for 2022
In an article published this week, CoinGecko has revealed the results of a study on the amount of funding cryptocurrency companies raised from 2018 to 2022, based on data from DeFillama.
In 2022, these companies managed to revive $21.26 billion. This figure is inside 42% drop. compared to that of 2021, which amounted to $37 billion.
But despite recording this year-over-year decline, the amount of funding raised in 2022 stay superior to those from 2018 to 2020, which total $16.22 billion, $4.48 billion and $4.40 billion, respectively.
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A deceleration from one quarter to the next
On a quarterly basis, 41% of the amounts raised last year, or $8.72 billion in absolute value, occurred during the first three months. Data for subsequent periods show a gradual slowdown fundraising throughout the year.
Indeed, the amount of funding raised has risen respectively from $5.92 billion to $3.61 billion and finally to $2.99 billion, for the second, third and final quarters of 2022.
A smaller pullback for this crypto winter
Unsurprisingly, all of this data illustrates a significant drop in fundraising in 2022 of $15.8 billion compared to 2021, which was a boom year for cryptocurrencies.
Bear markets and major events that marked the past year, such as the collapse of Terra, Celsius, Three Arrows Capital and FTX, have impacted negative impact on the dynamics Of the industry.
However, CoinGecko points out that this 42% drop in 2022 compared to the previous year, is far less importantcompared to the 72.3% decrease in the amount of loans raised in 2019 compared to that of 2018.
Will this year be the year of recovery for fundraising or will the numbers remain fairly stable, as was the case from 2019 to 2020? While cryptocurrency markets may rebound sustainably this year, this investor prefers to approach 2023 with caution, lowering his ambitions.
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