As the crypto industry continues to gain mainstream recognition, $2.6 billion was invested in blockchain-focused startups in the first quarter of 2021.
Over 129 blockchain and crypto companies earned $2.6 billion in investments in Q1 2021, according to data from tech business intelligence platform CB Insights. The total is also higher than the previous full year, when blockchain companies just received $2.3 billion in 341 transactions. Starting this year, thFe crypto industry received a lot of attention as bitcoin, the most famous cryptocurrency, reached new all-time highs and attracted big names.
Several blockchain-based businesses have secured funding.
Recent capital inflows into Dapper Labs, the business behind the highly profitable CryptoKitties and NBA Top Shot games, crypto service provider Blockchain.com, and crypto lender BlockFi Inc. were among the largest transactions in the past year, according to the analytics firm. Dapper Labs raised $305 million in funding from investors including Michael Jordan and Kevin Durant, with investment firm Coatue leading the round. The investment boosted the startup’s value to $2.6 billion. As previously reported, Blockchain.com, headquartered in London, revealed that it had raised $300 million in its Series C round of investment, valuing the company at $5.2 billion.
This year, a number of well-known figures have embraced cryptocurrency.
Blockchain.com’s new round came just one month after the company raised $120 million from investors including Louis Bacon and Kyle Bass. Institutional and enterprise investors started pouring money into the crypto industry in droves this year. MicroStrategy, Paul Tudor Jones, Grayscale, PayPal, Massachusetts Mutual Life Insurance Co., and a slew of other big names have jumped on the cryptocurrency bandwagon. Tesla’s $1.5 billion investment in the leading cryptocurrency bitcoin earlier this year may have become the most influential. Corporate treasuries have been ostensibly replacing dollars. Bitcoin is now considered part of a risk-on inflation strategy. Bitcoin has been marketed as a way of storing money rather than a currency as a result of the distinction between and the leading cryptocurrency.