The global pandemic of last year had resulted in a loss of jobs for many individuals, as many organizations have also had to battle with different forms of losses. Coincidentally, that same period has witnessed an uprising in many crypto assets’ fortunes, as many investors have flocked to the space to maximize profits. Alternatively, the same period has witnessed the buying of digital assets like Bitcoin and Ethereum by many institutional investors. Many crypto analysts believe that these large corporations buying digital assets want to maximize their earnings in spite of a turbulent year. However, a new report by consulting giants- PWC predicts that cryptocurrencies’ institutional buying will continue to be on the rise.
Crypto startup fundings, mergers, and acquisition set to increase
The comprehensive report by PWC also projects that crypto startups will continue to incorporate into sizeable Blockchain technology companies as the market continues to boom. According to the report, the rise in fortunes of crypto funding for startups has increased by more than 30% in a year, a situation that confirms that the Blockchain startups will continue to get support. In the middle of 2020, crypto-related fundings decreased due to the harsh impacts of the COVID-19 pandemic.
Fortunately, that trend did not last long, as business restored to order as quickly as possible. However, despite the rise in Venture Capitals’ interest in crypto startup funding, PWC believes that significant technology companies will likely buy off many crypto startups and partner with a few of them, as they need to get exposure into the rapidly growing space looms. The report also showed the increase in Blockchain-related- mergers and acquisitions from the previous year, as they confirmed that large corporations had spent at least $1 billion on either acquiring or merging with many crypto startups.
DeFi and NFTs set for more greatness in 2020
The PWC report highlighted the purchase of CoinMarketCap by Binance for $400 million as the starting point of what the year 2021 will look like. Popular DeFi protocol- Curv was also acquired by payment giant- Paypal in a $200 million deal, another reason why the prediction of PWC does not look flawed. The report also believes that institutional investment and adoption of cryptocurrencies will go higher than that of 2020. According to PWC, many large organizations will not only be buying or investing in cryptocurrencies, they would start to create solutions, and business mergers with Blockchain networks as interest in the space continues to be high.
PWC also believes that the Decentralized Finance (DeFi) and Non-fungible tokens (NFTs) markets of the Blockchain space will also receive further boosts. PWC did not mention any particular digital asset that it tips to be ahead of others, but their report suggests that the onus will be on Bitcoin to lead the way once more. However, the PWC report agrees with many analysts’ predictions, who believe that 2021 will witness more innovations in the Blockchain space.