2021 was a tremendous year for crypto when it comes to things like sponsorships, mergers, and acquisitions. Last year saw billions of dollars worth of value created for the market alone through these deals. There were a total of 174 deals counted year-to-date that involved some type of crypto mergers and acquisitions, setting a new record for the space. Now, as the market enters another year, the question remains if 2022 will be just as good as 2021 in this regard.
Looking At Crypto Mergers In 2021
2021 is an important year for crypto in a number of ways. Not only did the market increase its supporters in this time, but it had also seen the support from institutional investors grow. This newfound interest in the market had led to a new record when it comes to mergers and acquisitions.
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Mergers and acquisitions (M&A) have been taking place in the market prior to 2021 so it wasn’t a novel concept. However, 2021 saw the number increase dramatically. The previous record had been made in 2018 just coming out of the 2017-2018 bull rally. Therefore, it makes sense that there was accelerated growth in M&As following the tremendous bull rallies for the year.
Crypto M&As hit record in 2021 | Source: Arcane Research
This number had grown almost three-fold in 2021 when the total number of M&As came out to 174. Given this number, the forecasts for M&As coming in 2022 have been very optimistic.
Will 2022 Measure Up?
The trend for M&As in 2022 has been a positive one so far. Going from deals what hundreds of millions of dollars to growing interest from companies in the space, it is expected that 2022 will not only follow the growth trend of 2021 but actually surpass it.
Crypto market back above $1.8 trillion | Source: Crypto Total Market Cap on TradingView.com
A notable M&A that has taken place in 2022 was when the London Stock Exchange had purchased a digital asset-focused trading system. Tora was acquired for $325 million, making it the largest M&A so far for the year. Shift4 comes in as a close second with the $300 million of The Giving Block, a crypto donation platform.
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Crypto exchanges have however been the main drivers of the M&A deals recorded in the space. These exchanges which have continued to expand have been ramping up their M&As activities, accounting for 8 of all the 41 M&A deals that have taken place so far in 2022. Most of the acquisitions have been towards improving and adding new services for the users of these platforms.
Featured image from Investment Executive, chart from TradingView.com