The average deal size in the crypto sector increased from $19 million in 2019 to almost $53 million in 2021, according to a new PwC report. This consolidation of crypto-related firms surged extensively in 2021, reaching a new record in deal activity, based on a new report by professional services network PwC.
Notably, the total volume of mergers and acquisitions in the crypto sector more than doubled from $481 million in 2019 to $1.1 billion in 2021. The data was published on March 29, 2021, in a market overview that was seen by Bloomberg.
Cryptocurrency fundraising increased by 33% in overall value last year. Countries within the EMEA region saw a significant spike in the number of deals, while the Americas saw a threefold growth in deal value.
After the new highs set in 2021, deal activity in the cryptocurrency industry might continue growing in 2021. PwC global cryptocurrency leader Henri Arslanian said that this year is already on track to considerably exceed it from all metrics with institutional investors and high-profile investors moving into the nascent sector.
Coupled with greater consolidation in crypto, PwC also projected that the sector might become more institutionalized. The survey allegedly cited major gains in the cryptocurrency market, with BTC reaching its all-time high of just below $61,000 in mid-March. There is also growing adoption of central bank digital currencies (CBDCs), decentralized finance (DeFi), stablecoins, and non-fungible tokens (NFTs).