The year 2022 was a dark one for the crypto industry. Some light did shine on Switzerland's Crypto Valley, a new study shows.
After a year that many in the crypto industry would prefer to forget, cryptocurrencies started the new year buoyant. Still, the last twelve months have left deep scars in Switzerland's «Crypto Valley,» the latest edition of the «CV VC Top 50 Report» by Zug-based investment firm Crypto Valley Venture Capital shows. The data also illustrates the local blockchain industry is weathering the crypto winter relatively well.
In the wake of the crash of digital tokens and coins, company valuations have also fallen significantly. Although the 50 largest companies were valued at $185 billion at the end of the year, it still means the leading blockchain companies are worth 70 percent less than the $612 billion at the end of 2021's year of plenty.
The Thinning Unicorn Herd
Despite the sharp drop, Crypto Valley is still home to nine unicorn companies with valuations exceeding $1 billion. Platform and protocol providers continue to dominate the top 50 list, but when it comes to blockchain platforms, there are only half as many unicorns as a year ago.
Among the unicorns are blockchain platforms Dfinity, Near, Cosmos, Solana, Web3 Foundation, Cardano, and Ethereum, and two commercial companies, ETP issuer 21.co and Safe, a digital asset manager. Commercial companies were included in this list for the first time by CV VC.
More Blockchain Companies
Aside from the hefty valuation corrections, there are encouraging signs. Although the current crypto winter represents a bleak market environment, the number of blockchain companies in the Crypto Valley, which includes both Switzerland and Liechtenstein, grew last year, albeit by a modest 0.6 percent to 1,135.
The report identifies nine crypto hotspots: Zug, Zurich, Liechtenstein, Geneva, Ticino, Vaud, Neuchâtel, Schwyz, and Luzern. The biggest concentration remains in the Canton of Zug, home to nearly half of all companies with 510, followed by Zurich with 197 and Geneva with 70. The Principality of Liechtenstein counts 97 companies.
Internationally many crypto companies are cutting jobs, in some cases en masse, but the number of employees at Crypto Valley companies remained relatively stable compared to the previous year at around 6,000 jobs. Overall job cuts amounted to «only» 5,766, while among the top 50, employment numbers increased significantly from 1,010 to 1,248, an increase of 24 percent.
Solid Financing Rounds
An evaluation of last year's funding rounds shows the blockchain industry is proving resilient despite adverse conditions, with crypto banking also benefitting. Committed capital increased by $85.2 million, up 2.7 percent, to $3.2 billion. Funding highlights included with Seba Bank raising $110 million, competitor Sygnum hauling in $90 million, followed by 21.co with $25 million.
Safe, in turn, raised $100 million and spun off from Gnosis in February 2022, to foster a growing ecosystem of applications on its smart contract accounts.
