According to a recent analysis by international audit and consulting firm KPMG, a slowdown in cryptocurrency investment, notably in companies producing coins, tokens, and non-fungible tokens (NFTs), will persist in the second half of the current year.
According to the research, global investments in cryptocurrencies and blockchain amounted at US$14.2 billion as of June 30.
The greatest transactions were venture capital (VC) raises, including the US$1.1 billion raised by Trade Republic in Germany, the US$550 million raised by Fireblocks in the US, the US$500 million raised by FTX in the Bahamas, and the US$450 million raised by ConsenSys, according to KPMG.
According to the analysis, global investments in the cryptocurrency sector reached a record high of US$32.1 billion in 2021, up from US$5.7 billion in 2020 and US$5.3 billion in 2019.
According to the research, the Russia-Ukraine conflict, growing prices, and difficulties facing the Terra crypto ecosystem caused the crypto sector to “collapse” halfway through the first half of 2022.
According to KPMG, more developing nations may follow El Salvador and the Central African Republic in adopting Bitcoin as legal cash in the second half of 2022 and beyond.
The report stated that while some cryptocurrency businesses would fail, those with sound risk management practices, long-term thinking, and good cost management capabilities will thrive.
