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Crypto M&A Surges Almost 5,000% in 2021: PwC Report

2 mins
Updated by Andrew Rossow
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In Brief

  • Crypto M&A rose by 5,000% last year.
  • Average deal sizes in 2021 stood at $179.7 million.
  • 2022 maybe even more successful, continuing on the success of past years.
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A PwC report shows that crypto mergers and acquisitions (M&A) in 2021 rose by nearly 5,000% compared to 2020. Venture capitalists flooded into the market in 2021, with crypto fundraising deals rising by 645%.

Mergers and acquisitions in the crypto space skyrocketed by nearly 5,000% in 2021, according to a PwC report. The developments showcase the high interest and activity in the crypto space, which continues to grow despite the recent downturn in the market.

Average deal sizes in 2021 stood at $179.7 million, with crypto fundraising deals rising by 645% in value. PwC notes that this kind of fundraising and valuations are not going to stop anytime soon. Henri Arslanian, PwC crypto leader, shared that valuations, in some cases, have hit levels “that are often difficult to justify.”

At the time, he said that large VC firms were outbidding smaller ones, which was upsetting the latter. Last year, PwC reported that large investments were getting heavily involved in the crypto market, which has helped drive prices up.

PwC believes that blockchain tech will have an enormous impact on supply chain. Perhaps this will be particularly important in 2022, where supply chains are still affected by the COVID-19 pandemic.

2021 was a record year for crypto in many respects. Besides experiencing great growth in price, the amount of venture capital poured in also hit a new high of $17 billion.

2022 may see much more capital come in

The amount of investment coming into the market may very well reach new heights for a third-year running. PwC reported in 2020 that the overall value of cryptocurrency M&A’s reached $1.1 billion. If that trend continues, 2022 might be a particularly strong year.

There are several reasons as to why this may happen. Crypto is finally reaching a mainstream level of adoption, thanks to the likes of use cases like NFTs. The latter has brought many established firms and prominent individuals into the market, further increasing awareness.

The metaverse may also have a strong role to play this year. The concept in general is kicking off, and projects like Decentraland and The Sandbox have been developing ideas that are accessible, which could attract more VCs with their success.

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Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...