So far in 2019, we’re seeing corporations and investors make even even bigger bets on virtual assets such as cryptocurrency and blockchain systems. As of right now, the sum of these investments is on track to reach record levels.
Cryptocurrency in Previous Years
Last year, we saw a sharp rise in the amount of money major companies invested in cryptocurrency and blockchain startups from just a few years ago. Groups, including names such as Microsoft and the London Stock Exchange, invested $2.5 billion in such startups compared to the $0.4 billion that such groups invested back in 2017. This means that each month of 2018 saw an average of $208.3 million invested in the DLT (Distributed Ledger Technology) sector. It is worth noting that cryptocurrency prices were on a downward trend for much of last year, yet this was still a 500% increase from 2017’s ICO boom.
The DLT sector has attracted more than $850 million in investments during these first few months of 2019. Most of these investments came from large corporations and venture capital funds.
Future Potential
Clearly, cryptocurrency has been a powerful force during the last few years. If the trend continues, we could see a second record year of investment. This year, we’ve already seen corporations invest a monthly average of $242.9 million into cryptocurrency and blockchain startups. This alone is $35 million more than the average monthly investment of last year!
Evolving Investor Interest
2019 isn’t just about seeing changes in investment averages. The landscape of investors is also evolving. In the past, venture capital firms were the main groups responsible for funding cryptocurrency projects, with the leading groups including names such as Digital Currency Group and Pantera Capital. It’s safe to say that 2019 will be another good year for venture capital investment. That being said, it is unlikely to see as much VC investment as in previous years with so many other investors demonstrating interest in capitalizing on blockchain and cryptocurrency’s potential. And now, many of the largest corporations are starting to invest significant dollars in the space.
During the past few years many large corporations avoided investing in cryptocurrencies due to the overall volatility of the market and the uncertainty that comes with investing in new technology. Over the last year, the market has become more stable and there are now secure platforms in place to leverage digital currency. Corporations are now more comfortable with making such investments and holding cryptocurrencies.
Although cryptocurrencies were on a bit of a downward trend last year, the market still remains strong. We’re also expecting to see more investments from larger corporations, which could very well change the investment landscape as we head into the second half of 2019.