Investment Funds Pumped About $1.5 Billion In Crypto Projects
Investment funds have pumped close to $1.5 billion in various cryptocurrency projects in the last month alone. According to crypto expert and CEO of Nominex.io crypto exchange Pavel Shikitin, institutional investors are massively entering the crypto market. During a conversation with UseTheBitcoin he compared the current market situation with the end of 2017 when Initial Coin Offerings (ICOs) were the hot topic.
Investment Funds Continue Investing in Crypto Projects
There is a large number of investors that are entering the cryptocurrency market. Shikitin is not only talking about retail investors, but he is making a clear reference to institutional players. He compared the end of 2017 with the growth of Initial Coin Offerings with the current market situation.
In the last month alone, he said that $1.5 billion in new investments have entered the market financing different crypto-related projects. One of the main reasons behind this large amount of money entering the market could be related to blockchain projects being technically more mature than in the past.
At the same time, he stated that the number of funds locked up in Decentralized Finance (DeFi) platforms continues to grow as well. At the moment, this value stands at $80 billion and it has expanded by around 16 times this year alone.
This also comes after a year in which central banks from all over the world have been printing large amounts of money to fight against the negative effects of lockdowns around the world. As Shikitin says, only in 2020, a quarter of all existing dollars were printed 2020, which is equal to $9 trillion.
Most market players realize that this is an extreme situation. Investors realize that Bitcoin could work as a means of saving their assets if traditional markets fall. Moreover, there has been a strong currency debasement in recent years, which could also be pushing investors to the crypto market.
On the matter, the crypto expert explained:
“In my experience, now an increasing number of people regard Bitcoin as a means of saving their assets in case of the drop of traditional markets. An additional factor is the major adoption of crypto by institutional investors. Bitcoin whales act as they used to and continue to accumulate their assets. Analysis of the funds’ movements on the blockchain proves it.”
At the time of writing this article, Bitcoin (BTC) is being traded above $47,500 and it has a market valuation of $890 billion. New investments could come to BTC in the near future.
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