PwC has shared its fresh report on the crypto market state, showing major growth of the European and Asian shares in mergers and acquisitions (M&A) and fundraising global activities and a shift in the investment interests towards blockchain infrastructure development.
According to PwC, 67% of fundraising deals in the crypto industry in Q2 2019 are happening in Asia and Europe, while the Americas have lost the dominant position and in Q2 2019 account for just 28%.
Europe had 41% of the global fundraising deals in the second quarter of 2019, compared to 34% of deals in the same period of 2018. Asia has also shown significant growth and has reached 26% of the deals in the second quarter of this year.
However, the total number of fundraising deals and its value has dropped by more than 50% compared to Q1 2018, although the last quarter has shown an optimistic trend. The value of global deals has recovered from $166 million in the first quarter to $250 million in the second.
In the M&A sector, the U.S. market has also lost dominance, while Asia and Europe have grown from 17%, accounting for over 50% of the market now.
PwC also reported the shift of investment interests more towards blockchain infrastructure development, which is reflected in the decline of M&A deals in the mining sector. Lucy Gazmararian, senior manager of PwC’s fintech and crypto team, said:
“Since the first half of 2018, we have seen the investment in the mining sector has been consolidating while healthy activity remains in blockchain, exchanges, and trading infrastructure.”
According to Henri Arslanian, PwC FinTech & Crypto Leader, “except perhaps for crypto mining, we are seeing capital flow to every sector of the crypto industry”.