3 crypto-market trends to look out for this year, according to PwC

Bitcoin’s meteoric rise has boosted crypto hedge funds

  • Cryptocurrency M&A is expected to have a stellar 2021, according to PwC, after the value of M&A deals in the space doubled year over year in 2020.
  • The firm revealed that the average M&A deal size jumped by 174% from $19.2 million to $52.7 million in 2020.
  • PwC outlined the three trends to expect in the crypto space in 2021.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell

Mergers and acquisitions will be a big theme in the cryptocurrency space, according to PwC, after the value of M&A deals in the sector doubled year over year in 2020.

In a report published on Monday, the Big Four accounting firm revealed that the average M&A deal size jumped by 174% from $19.2 million to $52.7 million, with four deals valued at more than $100 million in 2020. The firm also revealed that transactions are shifting away from the Americas, with 60% occurring in Asia and Europe compared to 2019.

Transactions, according to PwC, are also more spread out across categories.

“With increasing interest in crypto from retail and institutional investors following the positive market momentum, it is not surprising to see increase M&A in the broader train sector,” the report said.

The report comes amid a rapid rise of interest in the cryptocurrency space, with bitcoin, the most popular digital asset, rising 600% in the past year alone. While many bitcoin bears continue to criticize cryptocurrencies, many advocates are expecting the boom to continue amid rising interest from both retail buyers and institutions.

The UK-based firm, in the report, then outlined the three trends to expect in the M&A activity in the crypto space across the globe after a record-breaking 2020.

Crypto M&A will be be driven by large players

PwC said it expects to see further consolidation in the industry with larger, well-funded, and profitable firms seeking to continue their M&A activities. “We expect the focus to be not on the acquisition of smaller competitors but rather of firms that offer ancillary services to their current offering,” the report said, referring to crypto media, data, and compliance research.

Institutionalization of the crypto industry will continue

The firm said it predicts a steady continuation of institutionalization of cryptocurrencies, driven by the rally in the price of the digital tokens as well as heightened media attention on central bank digital currency (CBDC), stablecoins, decentralized finance (DeFi), and non-fungible tokens (NFTs). PwC said all these will serve as catalysts to more institutions wanting to enter the space through investing or acquiring.

M&A, as well as fundraising, will increase

Based on the bull market in the first quarter of 2021, PwC said it expects the number and value of M&A deals to increase this year. It also said it sees more activity comeing from Asia-Pacific and EMEA reagions.

Read the original article on Business Insider

The New York-based crypto exchange owned by the billionaire Winklevoss twins added 7 new tokens to its platform after an explosion of interest in digital art and NFTs

Tyler Winklevoss Cameron Winklevoss
Tyler Winklevoss and Cameron Winklevoss.

Gemini, the digital currency exchange founded by the Winklevoss twins, announced on Monday that it added seven new digital tokens that support decentralized finance, gaming, NFTs, and the decentralized web.

The six tokens that are entirely new to its platform include Bancor, 1inch, Loopring, The Sandbox, Skale, and The Graph. The token Enjin is already supported for custody purposes, but will now be available for trading.

The latest additions raise Gemini’s total supported cryptocurrencies to 33. Another 10 are supported under its custodial services.

A fresh interest in the DeFi revolution, digital art, and NFTs has contributed to Gemini’s expansion into crypto projects. The exchange only recently counted more than $20 billion in crypto under custody.

Bancor is a payment token that allows users to convert virtual currency tokens without the need for a counterparty to facilitate the exchange. The 1inch token is associated with a platform that provides the best crypto prices across decentralized exchanges. Loopring offers a pool of open-sourced software to help build decentralized exchanges. The Sandbox is a virtual world where users can monetize their gaming experiences, similar to Enjin. Skale and The Graph allows developers to build decentralized apps in cost-effectively.

Enjin last month launched a web game with Microsoft that introduced NFTs for use on one of the world’s most popular games, Microsoft.

“We look forward to providing further access to new crypto projects as our industry grows to new heights, and as we continue to build the infrastructure to support the future of finance,” Gemini said in a statement.

Read the original article on Business Insider