Key Takeaways
- • Global private equity and venture capital investment in blockchain fell 27% year over year to $2.99 billion in 2024, while blockchain deal count declined close to 17%, according to S&P Global Market Intelligence data.
- • Private investment in cryptocurrency dropped about 25% to $1.57 billion, reflecting investor caution as generative AI drew capital away from blockchain and crypto.
- • North America led private equity-backed activity, with 111 blockchain deals totaling $1.72 billion and 78 cryptocurrency deals worth about $781 million; Europe, including the UK, ranked second.
- • The largest blockchain deal was Doc.com Inc.'s $300 million round from Silver Rock Group, while the largest crypto deal was a $100 million investment in Crypto Technology Ltd.
- • Industry observers expect renewed institutional interest after bitcoin's recent price rally, and 451 Research sees blockchain and GenAI as complementary technologies.
Summary
Private equity and venture capital investment in blockchain continued a multiyear decline in 2024, according to S&P Global Market Intelligence data. Transactions targeting blockchain totaled $2.99 billion, down 27% annually, while the number of deals fell close to 17%. Private investment in cryptocurrency, a digital asset that runs on blockchain technology, declined about 25% to $1.57 billion, which the report attributes to investor caution.
The surging generative AI industry has overshadowed both blockchain and crypto as investors pursue the next technological breakthrough. Blockchain has nonetheless found applications beyond cryptocurrency, including healthcare and supply chain management. The new US administration's pro-crypto stance drove bitcoin's recent price higher, and investors anticipate favorable regulatory policy, though S&P Global characterizes crypto as a speculative bet compared with blockchain. 451 Research, a technology research group within Market Intelligence, expects blockchain to benefit from GenAI, noting in a report that blockchain's role as a tamper-proof shared data repository makes it valuable where auditability and trust are critical.
North America dominated private equity-backed activity. Blockchain companies in the US and Canada recorded 111 deals totaling $1.72 billion, while cryptocurrency companies in the region received about $781 million across 78 deals. Europe, including the UK, ranked second, with 48 blockchain deals totaling $654.4 million and 51 cryptocurrency deals reaching $489.2 million. The largest blockchain investment was Doc.com Inc.'s $300 million round from Silver Rock Group, followed by Fulgur Ventures' $209 million investment in Canadian firm Blockstream Corp. Inc. In cryptocurrency, the largest deal was a $100 million investment in UK-headquartered Crypto Technology Ltd., with participation from Nomad Capital and No Limit Holdings, and the second-largest was a $60 million investment in Figure Markets Inc., led by Faction Ventures LLC and Pantera Advisors LLC.
Interchain Foundation, a Switzerland-headquartered blockchain developer, expects renewed institutional interest following bitcoin's price spike. Its president, Josh Cincinnati, told Market Intelligence that other projects gain attention when bitcoin rises and that institutional investors are growing more comfortable investing beyond bitcoin. He cited a Toyota Motor Corp. project using blockchain for intercar communication and predicted enterprises will adopt systems that prove transactions without revealing customer data, reducing data liability. Cambridge Blockchain Society President Kisso Selvan noted that many large venture-backed crypto projects have underperformed expectations, while regulatory momentum for blockchain adoption in supply chain management has grown.
The surging generative AI industry has overshadowed both blockchain and crypto as investors pursue the next technological breakthrough. Blockchain has nonetheless found applications beyond cryptocurrency, including healthcare and supply chain management. The new US administration's pro-crypto stance drove bitcoin's recent price higher, and investors anticipate favorable regulatory policy, though S&P Global characterizes crypto as a speculative bet compared with blockchain. 451 Research, a technology research group within Market Intelligence, expects blockchain to benefit from GenAI, noting in a report that blockchain's role as a tamper-proof shared data repository makes it valuable where auditability and trust are critical.
North America dominated private equity-backed activity. Blockchain companies in the US and Canada recorded 111 deals totaling $1.72 billion, while cryptocurrency companies in the region received about $781 million across 78 deals. Europe, including the UK, ranked second, with 48 blockchain deals totaling $654.4 million and 51 cryptocurrency deals reaching $489.2 million. The largest blockchain investment was Doc.com Inc.'s $300 million round from Silver Rock Group, followed by Fulgur Ventures' $209 million investment in Canadian firm Blockstream Corp. Inc. In cryptocurrency, the largest deal was a $100 million investment in UK-headquartered Crypto Technology Ltd., with participation from Nomad Capital and No Limit Holdings, and the second-largest was a $60 million investment in Figure Markets Inc., led by Faction Ventures LLC and Pantera Advisors LLC.
Interchain Foundation, a Switzerland-headquartered blockchain developer, expects renewed institutional interest following bitcoin's price spike. Its president, Josh Cincinnati, told Market Intelligence that other projects gain attention when bitcoin rises and that institutional investors are growing more comfortable investing beyond bitcoin. He cited a Toyota Motor Corp. project using blockchain for intercar communication and predicted enterprises will adopt systems that prove transactions without revealing customer data, reducing data liability. Cambridge Blockchain Society President Kisso Selvan noted that many large venture-backed crypto projects have underperformed expectations, while regulatory momentum for blockchain adoption in supply chain management has grown.
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