Crypto M&A Up 5000% in 2021

According to a PriceWaterhouseCoopers Report the average deal size of Cryptocurrency based Mergers and acquisitions more than tripled from 2020 to $179.7 Million.

“The total value of crypto-related mergers and acquisitions (M&A) rose to $55 billion in 2021 versus $1.1 billion a year earlier, according to a report from PricewaterhouseCoopers (PwC).”

“The U.S. led in absolute numbers of deals, with 51% of all transactions last year, up from 41% in 2020. Europe, the Middle East, and Africa (EMEA) garnered 33% of all deals, with Asia Pacific (APAC) netting 16%. Looking at deal dollar values, EMEA led the way at $25.5 billion versus $24.5 billion for the U.S. and $5 billion for APAC. Behind the rise in average deal size to $179.7 million from $52.7 million was 2021’s U.S.-centered special purpose acquisition company (SPAC) boom, which featured several $1 billion+ mergers.”

“PwC also tracked crypto fundraising deals, finding a 645% year-over-year rise in 2021 to a total value of $34.3 billion. The average deal size was up 143% to $26.3 million.”

So what does this mean?

Firstly, the staggering percentage growths happening to cryptocurrency are reminiscent of the early days of the internet, the cryptocurrency industry is at a point where its funding hundreds and maybe thousands of projects to find new innovations for the technology to be used in.

Secondly, It is a global technology. No, I just don’t mean that crypto is accessible to everyone anywhere but something more profound, the reason why Silicon Valley became Silicon Valley was because at the early stages of the development of the internet virtually every venture capitalist at the time was in California. So, a massive cash pile, and talented software engineers gave Silicon Valley an almost monopoly on the development of technology, but this trend is not evident with crypto as the report shows - Europe, Asia, the Middle East, and Africa are receiving massive funding to develop crypto-related technologies. Meaning that there will likely be no such thing as the Silicon Valley of Crypto instead we are going to see dozens of hubs of cryptocurrency innovation centers spread out across the world, which is fitting that a decentralized technology will also have decentralized innovation.

Lastly, this growth is not stopping anytime soon as Peter Thiel said “Eventually software will eat everything” similarly I will say “Eventually Crypto will eat the entire financial market.”

Source: https://www.coindesk.com/business/2022/02/10/crypto-ma-surged-nearly-5000-in-2021-pwc-report-says/