Crypto’s Resilience in a Challenging Environment
Despite a notable decline in fintech investments across Europe, the crypto and blockchain sectors have emerged as unexpected champions. As traditional fintech faces a harsh reality, crypto activities are securing a remarkable share of the investment pie.
The Numbers Tell the Tale
According to the latest State of European FinTech report by Finch Capital, the EMEA region saw fintech funding plummet by 50% in the first half of 2023, dropping from a hefty $27.3 billion in H1 2022 to just $11.2 billion this year.
Crypto’s Dominance in Key Markets
Among the various sectors vying for capital, the blockchain and crypto segments made a splash with impressive figures:
- In the United Kingdom, crypto captured a solid 28% of fintech deals.
- Netherlands saw an even bigger slice, with 35%.
- In Germany and France, the figures stood at 27% and 29%, respectively.
It seems like the crypto world knows how to dance even when the music stops.
Lending Competition: The Spoiler Alert
While crypto flaunts its growth, lending still holds sway in Ireland and across Europe for overall deal volume. It’s the tortoise to crypto’s hare, moving slowly yet steadily. The lending sector appears to be the main rival gripping market shares.
Investor Confidence in Digital Assets
Amidst these fluctuations, the enthusiasm for digital assets remains robust. Reports suggest that 24% of asset management firms have embraced a digital assets strategy, with an additional 13% planning to take the plunge in the next two years. Clearly, wallets are tightening but eyes are widened.
Promising Signs from Crypto Companies
It’s worth noting that not all is gloomy; some crypto firms are basking in the spotlight. European digital asset manager CoinShares announced a 33% increase in revenues, totaling £20.3 million ($25.9 million) in Q2 2023 compared to the previous year.
In times of uncertainty, it seems crypto companies still have a few tricks up their sleeves.
Crypto as an NFT: An Artistic Touch
Why not collect this article as an NFT? Preserve this piece of information in the vibrant history of crypto and support independent journalism while you’re at it!
