Crypto industry got more funding in Q1 2021 than all of last year: Report

Cryptocurrency and blockchain-related companies have already received more funding this year than in all of 2020, according to a new report.

In the first quarter of 2021, 129 startups focusing on crypto and blockchain technology have received a total of $2.6 billion in funding, Bloomberg reports, citing data from business analytics firm CB Insights. Over the course of 2020, crypto and blockchain firms attracted a total of $2.3 billion in 341 deals.

According to the data, 2018 is the record year in terms of funding secured in the crypto industry, with total funding amounting to $3.3 billion.

According to CB Insights, the increased funding in 2021 was driven by several big rounds for firms including American crypto lending startup BlockFi, Canadian blockchain-based game maker Dapper Labs and United Kingdom-based crypto wallet provider Blockchain.com. 

These three companies alone have raised nearly $1.1 billion this year, with BlockFi completing a $350-million funding round in March.

After raising $120 million in February, Blockchain.com secured $300 million funding in a new funding round in March, bringing the firm to a $5.2-billion valuation. 

Dapper Labs, the creator of the popular Ethereum-based game CryptoKitties and the nonfungible token marketplace NBA Top Shot, raised $305 million from investors, such as NBA star Michael Jordan, earlier this year.

Alongside notable growth in venture capital funding in the crypto industry, crypto and blockchain companies have been also growing this year in terms of consolidation. According to Henri Arslanian, global crypto leader at PricewaterhouseCoopers, 2021 is already on track to significantly surpass the levels of crypto mergers and acquisitions recorded in 2020.