What was the size of thecryptocurrencies boom in 2021? According to a report, there was a 5,000% increase in the number of mergers and acquisitions in the last year.
According to a report by PwC, the value of scurvy mergers and acquisitions increased from $1.1 billion in 2020 to $55 billion in just one year.
A threefold increase in the average size of an M&A was seen. According to the report, a few mega-billion SPAC were behind the jump.
In 2021, the activity shifted back to the Americas. The region’s share of the total number of M&A deals went from 42% to 51%.
The total value is $25.5 for Europe, the Middle East and Africa. The Asia-Pacific region has just $5 billion in mergers.
The multinational corporation, which provides assurance, consulting, and tax services, also reported on the efforts to raise money for cryptocurrencies. From $4.5 billion to $26,3 billion, the total value of such deals increased. The average amount increased by 143%.
There were 49 new funds in the number of venture capital firms that finance the projects in 2021. The total number of such VCs is close to 500
Trends in 2022
The industry has seen a significant rise in the past year, according to the report. The larger the number of VC funds, the more deals will happen.
The report suggests that there is a question as to whether the companies will continue to tap into SPACs as funding opportunities. A way for companies to avoid some of the regulatory scrutinies when going public is offered by Special Purpose Acquisition Companies.
The continued growth trend in NFTs, DeFi, Web 3, and the Metaverse is also seen in the report. There was tremendous growth in the segments of the space in 2021. This trend is likely to continue, but more with fundraising deals than M&A, as the tech is still in its early stages.
With more institutional actors entering the scene, the rest of the space will mature. The paper concluded that there would be more consolidation and expansion of the industry.
The Crypto Industry Boom
Financial industry reports show that the industry saw a tremendous growth last year.
According to a document by accounting giant KPMG, investments in the digital asset space soared 450%. According to an earlier report by LinkedIn, demand for jobs in the space grew by 395%.
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