Despite the fall in cryptocurrency prices, the blockchain industry is doing quite well and will continue to develop, according to a report by the British venture capital investor Outlier Ventures.
A total of 343 blockchain startups raised $ 1.8 billion in risk capital in the first half of 2018, which is twice as high as the sum collected in the whole of 2017, and the number Industry enjoys good health, according to a recent report by the British venture capital investor Outlier Ventures specializing in blockchain and tokenised companies.
"Forget what you've heard, despite the negative feeling and the token bear market, if you scratch under the surface, the larger blockchain ecosystem is experiencing rapid growth and maturation. price of the token advertised is misleading as a proxy for the health of the ecosystem, "the report, titled" The status of Blockchains Q2 2018: The cryptographic markets are wrong, "he noted.
He added that in the second quarter the market saw the development of corporate blockchain projects and favorable regulatory decisions.
On the other hand, the $ 1.8 billion figure is inflated from the $ 4 billion EOS and $ 1.7 billion from Telegram. At the same time, small retail investors are coming back, since traditional finance has moved. In the second quarter of 2018, the industry had to face the decline in the first quarter over quarter of the increase from token sales.
In the first half of the year, the industry saw 343 transactions in 30 mergers and acquisitions.
"Tokens now acquire companies," the report noted, referring to the Tron project that acquires BitTorrent, while a growing number of popular consumer companies are collaborating with companies in the blockchain sector.
In July, for example, the Bitmain encryption giant invested $ 50 million in the Norwegian internet browser Opera, which launched a cryptographic portfolio in the browser. Meanwhile, smartphone maker HTC launched a device that integrated Ethereum's CryptoKitties into its main offering. This tendency is likely to continue.
"Over the next two quarters, we will see a growing number of companies with access to large customer bases that use their ability to integrate individuals with tokens that are liquid-rich but are struggling for distribution," the report noted.
At the same time, large "traditional companies" show a significant interest in the possible applications of blockchain technology. Walmart is integrating blockchain into its supply chain to track food, while maritime giant Maersk and IBM are creating a blockchain shipping system.
"Some of the largest companies in the world including consumer Internet companies like Facebook, Google, Ant Financial, and Baidu are launching all the products of the real world," reads the report.
Cryptographic and encryption-conversion services are also enjoying an upward trend. The token exchange of SBI Holdings was launched in the second quarter of 2018, while the Robinhood app integrated a number of altcoins into its system.
All this is happening in a regulatory context of "caution, calm and exploration". While banks, both commercial and central, are trying to put all kinds of obstacles or even banning encryption, users have found an alternative solution through peer-to-peer platforms with money exchange mechanisms. Regulatory collapse will probably continue, despite the government's growing interest in the blockchain, or because of this.
"To summarize: ignore the markets This quarter showed that institutional capital, businesses and regulators are turning into blockchains and crypto-assets," the report's authors concluded.
He also noted that the ecosystem is maturing, becoming more diverse and serving more cases than ever before.