Due to the continuing impact of the “COVID-19” epidemic, the global economic development is not optimistic in 2020. In the latest “World Economic Outlook” report, IMF predicts that the global economy will contract by 4.9% this year. In the first half of the year, the global market fluctuated violently, the stock markets of many countries broke one after another, the crude oil futures fell to negative value, the international gold price soared, the asset risk intensified, and the asset shortage became increasingly prominent. However, in such a “magical” background, PAData found that investment and financing in the global pan-block chain still maintained rapid growth in the first half of this year.
This paper is the first part of the analysis of investment and financing in the field of global pan-block chain in the first half of 2020, which will focus on the fundamentals of investment and financing and the changes of the industry track.
Investment and financing projects increased by 4% year-on-year.
The amount increased by 113% over the same period last year.
After analyzing all the investment and financing events in the first half of the year according to the public data, PAData found that there were 169 pan-block chain projects in the world, with 170 investment and financing events, including 151venture capital, 13 acquisitions and 6 other financing events. As the amount of acquisition is much higher than the investment, and the number is small, so this analysis only considers venture capital events.
According to statistics, in the first half of the year, a total of 151 venture capital events occurred in 151 projects in the global blockchain field, and the number of completed financing projects increased by about 4.14% over the same period last year. The number of financing events was the same as that in the same period last year, and the overall activity changed little.
It is worth noting that in the first half of this year, in the context of the intensification of the global asset shortage, the scale of investment and financing in the pan-block chain sector was significantly larger than that in the same period last year. If you add in the size of the acquisition project, the investment scale of the entire pan-blockchain sector will expand to 7.217 billion US dollars, which is partly a testament to the rapid development of the industry. Even when only venture capital is taken into account, according to statistics, a total of 100 projects disclosed the amount of financing in the first half of the year, with a total amount of more than 1.517 billion US dollars, a year-on-year growth rate of 113.06 per cent.
Among them, May this year was the highest month in which the amount of financing was disclosed, totaling 498 million US dollars. In addition, the amount of investment and financing disclosed in March was also relatively high, reaching 387 million US dollars. Overall, the average monthly amount of investment and financing disclosed in the first half of the year was about $253 million.
Exchanges and tool projects are favored by capital.
The application field is rich, but the amount of financing is not high.
According to PAData’s analysis of project investment and financing events in various fields in the same period last year, cryptocurrency is a kind of project with the highest total amount of investment and financing, especially the exchange and digital currency integrated management projects, the latter mainly refers to securities firms and digital banks. The second is the industry application, especially the payment and DeFi DAPP projects.
Compared with the same period last year, great changes have taken place in the distribution of investment and financing in various fields in the first half of this year.
First, cryptocurrency has replaced underlying technology projects as the most popular track for capital, with disclosed investments and financing totaling $1.008 billion, accounting for 66.47 per cent of the total disclosed. In the segment, exchanges remain the small category with the highest amount of investment and financing disclosed, reaching $684 million in the first half of this year. The exchanges that receive financial support are mainly financial derivatives exchanges or emerging market compliance exchanges, and investors are mainly exchanges. In the first half of the year, the amount of capital investment in the underlying technology sector is not large, and the total amount of instruments and agreements that disclose the largest amount of investment and financing is about 50 million US dollars.
Second, in terms of the subdivision of the cryptocurrency field, there are two new changes worthy of attention: first, the integrated management of digital assets has been overtaken by exchanges, which means that, despite the good stories told by digital currency brokerages and digital banks, exchanges are still the most profitable industry in the industry. Second, Staking, as one of the industry vents last year, has been “windy” this year.
In the first half of the year, no investment and financing activities took place in Staking projects, only the node supplier Blockdaemon received a strategic investment of US $5.5 million, but it was not directly related to Staking business. According to PAData’s earlier analysis, the actual return of the Staking French currency standard mainly depends on the fluctuation of the currency price, and the currency standard income has little impact on the conversion of the French currency standard income (refer to “are people who tried Staking last year now earn or lose?” And the admission of the exchange has further squeezed the space for the activities of the original Staking ecological participants, and Staking may need a new story if it wants to be “windy again” in the future.
In addition, the total amount of investment and financing disclosed in the industry application field in the first half of this year is only 264 million US dollars, compared with the same period last year, the industry application field lacks top applications to participate in investment and financing activities. And as the public chain is not as expected, the development of DApp is no longer the focus of the market.
However, from the perspective of the number of investment and financing events that occurred in subdivided areas, the industry application field shows an obvious and positive feature, that is, the application field is much richer than that of the same period last year. For example, there are financial trading platforms such as energy trading platform, supply chain financial platform, agricultural product trading platform, as well as landing applications in other industries, such as human resources management, password management, automobile industry and so on.
- data description: “/” indicates that the project includes two sub-areas. For example, “tool / Agreement” indicates that the project product contains two sub-areas: tools and agreements.
From the point of view of the amount of individual investment and financing, exchange, integrated digital asset management and payment projects are the most popular in the market, in which each project with public investment and financing amount can get an average investment of more than 20 million US dollars, far exceeding other sub-areas. In addition, in the recent hot DeFi field, a total of eight financing cases occurred in the first half of this year, of which seven were disclosed, with an average financing amount of about $7 million.