In 2020, total venture funding in the crypto industry was valued at $3.1 billion across 774 deals. The largest acquisitions were CoinMarketCap, Blockfolio and Tagomi.
The COVID-19 pandemic led to a 61% decline in funding in the first and second quarters. However, throughout 2020 venture-investor participation remained stable, writes The Block.
This year, there were 83 mergers and acquisitions (M&A) deals totaling $691 million — up 28% from the previous year. This is the highest level in the history of the crypto industry.
This year, Binance acquired the market-data aggregator CoinMarketCap. Analysts and insiders valued the deal at $400 million, accounting for about 58% of the year’s total M&A deal value.
Binance chief Changpeng Zhao said that his company conducts between 30 and 50 acquisitions annually. Details of most of these deals are not disclosed by Binance.
In 2018, 54 mergers and acquisitions occurred in the crypto industry, totaling $559 million. The year’s largest deals were Circle’s acquisition of the Poloniex exchange for $400 million, and Coinbase’s purchase of the Earn project for $120 million.
All of 2019 saw 125 acquisitions totaling $481 million. Notable were Kraken’s acquisition of the crypto-derivatives platform Crypto Facilities and Coinbase’s purchase of Xapo.
Earlier in the year, in the first half of 2020 there were more acquisitions of crypto- and blockchain-startups than in all of 2019, which was relatively prosperous. Investors have reduced their focus on early and seed stages, and activity has shifted from North America to Europe and Asia.
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