Rapidly falling cryptocurrency prices, impending industry-specific regulation and macroeconomic headwinds are taking a toll on global private equity and venture capital investments in blockchain and cryptocurrency.
Aggregate global deal value across the two assets tumbled 48.1% quarter on quarter in the three months to June 30, to a combined $2.7 billion, according to S&P Global Market Intelligence data.
A strong $16.65 billion was invested in these assets in 2021, of which $960 million was committed to cryptocurrency.
The ambiguity of digital-currency regulations by central banks, the cost of electricity used to run cryptocurrency mining farms and the ever-growing carbon footprint are among the factors hampering investment in cryptocurrency.
The enterprise interest in [blockchain-powered applications], however, remains strong, said Alex Johnston, research analyst at 451 Research.
"Companies are looking at applying [blockchain] technology to areas such as supply chain tracking,...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...