Despite a global decline in the blockchain market, the German crypto sector recorded surprising growth. This is according to a new report from Crypto Valley Venture Capital (CVVC). The German crypto sector saw investments totaling $355 million across 34 deals, up 3% year-on-year. The data covers the third quarter of 2022 to the second quarter of 2023.
🚀 The German Blockchain Report 2023 is here!
Key Highlights:
– Germany: 2.4% global blockchain financing
– 72% of the funds flow into startups
– DeFi leads with 32%🔍 Inside: Trends, financing, expert insights
Download the report at: https://t.co/kKfJ2NtJYM#GermanBlockchainReport
— CV Labs (@CV_Labs) September 13, 2023
Global decline in cryptocurrencies, Germany is growing
This means Germany accounted for 2.4% of global blockchain investments and 2.5% of global deals, compared to 0.9% and 1.9% respectively in 2022.
Almost all other jurisdictions worldwide are seeing a decline in investments in crypto-related projects so far in 2023. Germany has actually made progress. While global funding has fallen by 62% and the number of transactions by 44%, the German crypto sector continues to make progress.
The decline in investment amounts in the crypto world is attributed, among other things, to a lack of innovation. According to Tony Cheng of Foresight Ventures, many aspects of the crypto industry, such as: B. zero-knowledge proofs, Layer 2 solutions and non-fungible tokens (NFTs) have already fulfilled their promise. Investors may be worried that little more can be achieved. This could be a reason why venture capital firms are withdrawing from the sector.
What makes the German crypto sector unique?
Germany’s emergence as a blockchain hub shows that the country may have an advantage over other European countries. Crypto growth in Germany goes hand in hand with the country’s evolving crypto legislation, which prioritizes privacy and personal security. These regulations and their clarity could attract blockchain and Web3 companies.
Ulrike Lierow-Schad, the managing director of CV Labs Berlin, says this.
“Germany has strongly established itself as a hub for blockchain developments and can potentially serve as a model for other regions.” By passing legislation, Germany can pave the way for closer collaboration between its robust financial sector and the innovative world of blockchain technology, to improve processes, increase transparency and accelerate innovation.”
This means that Germany remains a bright spot in the world of blockchain, with growing funding despite global challenges.
