The financial corporation Morgan Stanley expects in 2022 a decrease in investment in the cryptocurrency industry by 50% by the end of the year.
Morgan Stanley published a report stating that the peak volume of venture investments in the cryptocurrency industry, recorded in December last year, began to decline. According to the company’s analysts, the crypto industry will develop in line with the pace of other sectors of the economy:
“Cryptocurrency companies raised a record $30 billion in venture capital last year. Although the number of transactions in this sector is still quite high, despite the recent fall in the cryptocurrency markets, however, activity is likely to decrease, reflecting trends in other categories of venture capital investment.
Morgan Stanley experts expect a decrease in the investment attractiveness of the cryptocurrency sector due to the fact that “activity in the eight most important venture capital markets over the past 12 months has decreased by 50% compared to the peak level.” In addition, the decline in the volume of venture investments may be affected by the deterioration in the performance of some of the largest investors who have invested in blockchain technologies and cryptocurrencies.
Morgan Stanley notes that at the beginning of 2020, most of the venture investments were directed to crypto infrastructure and related financial services. From late 2020 to mid-2021, decentralized finance (DeFi) applications were favored. However, experts from the American financial conglomerate believe that so far there is no evidence that investments in the crypto industry are more effective than in traditional financial systems.
Source: Bits
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
