Despite the challenges facing the cryptocurrency industry, it has had its arguably best year since Satoshi mined the first bitcoin. Crypto has grown by every metric used to judge a new technology but it has come at a price. Now, according to one of the most trusted companies in the world, crypto startups and investments in the US have grown 587%.
This is contained in its Q4 report for 2021. CB Insights noted that in just a year, the value of crypto venture capital funding increased from $3.1 billion to $21.3 billion. But it was not only in the US; around the world, more venture firms financed different types of crypto projects. But the US had some of the biggest fundings records.
The reason for this is not far-fetched; China banned cryptocurrencies. Before the Asian giant banned cryptos in September, China had the biggest and strongest crypto industry. Both crypto trading and mining activities were at a high volume in China before the government outlawed the former and cracked down on the latter.
The dramatic ban had an immediate effect on the crypto ranking list; China stepped down and the US claimed the top spot. Crypto companies, startups, and miners sought greener and friendlier pastures in the US. Notably, crypto exchanges and mining firms moved to the US, Singapore, Canada, and Kazakhstan.
Since the crypto market recovered from the May meltdown, it has performed well. According to CB Insights’ report, the Q4 performance for crypto has been bullish. This bullish trend is not just about the price of coins but also about the reception, investment, and funding of crypto projects across different blockchains.
Where China’s crypto investments fell by 50% to hit $214 million this year, the US experienced a 700% hike in crypto investments. As of now, nearly $11 billion have been invested in crypto in the US. More investors are attracted by the fast growth of crypto and the huge promise of returns that coins offer. Some coins have done over 5,000% since January.
The increase in global crypto investments might help cryptos to skip the long wait before it achieves global adoption. A compelling fact to support that statement is the growing acceptance of digital assets by both small and large businesses around the world. Some giants in the financial sector are also adding crypto features to their platforms to keep clients satisfied.
The Bullish Season Just Started
According to CB Insights’ analyst, Chris Bendsten, crypto investments, and startups have grown despite the fact that the world just entered December. December is now traditionally seen as one of the best months for cryptos as the previous years have shown a definite growth in December and January. And Bendsten is right.
Today, December 1, reports of mergers between crypto companies, approvals, and listings of crypto-based spot and futures ETFs on different stock exchanges, and funding deals being completed have emerged. If anything, crypto will only grow stronger in the coming months.