Despite the severe market correction of cryptocurrencies in fourth quarter last year, the number of participating companies in Crypto Valley has surged more than 20 percent, according to a new report.
The 50 largest blockchain companies in Switzerland and Liechtenstein may have lost more than half their market valuation by the end of last year, but the blockchain cluster in Crypto Valley rose by 121 companies, or almost 20 percent compared to the last count at the end of September 2018 according to a quarterly list.
«This new report clearly reflects the market correction that started in early 2018, which is significantly based on cryptocurrencies. However, it also shows that companies developing blockchain-based applications and infrastructure solutions have been able to keep up, while an impressive number of new startups with innovative use-cases have risen to the top,» said Mathias Ruch, Founder and chief executive of CV VC in a media statement. CV VC maintains CV Maps, an online directory of blockchain companies in Switzerland and Liechtenstein.
New Companies In the Top 50
The list is published by investment company CV VC, in collaboration with PwC Strategy & and IT partner inacta, showcasing the largest and most important companies in the cluster. Compared to the previous quarter, 15 companies entered the top 50 in the fourth quarter.
«This high dynamic in the middle of the crypto winter is very positive. It shows that the appeal of Switzerland as one of the world's most attractive locations for blockchain startups remains unbroken,» said Daniel Diemers, Blockchain Leader EMEA PwC Strategy.
On average, the top 50 companies are valued at $400 million each. Excluding the five largest, the average figure is still $365million - a sign that concentration is relatively low. The average valuation of all 750 companies was estimated at $27 million. Four unicorns, or startups valued at over $1billion, are present in Crypto Valley: Ethereum, Bitmain, Dfinity and Cardano.
Crypto Winter
‘Crypto winter’, as 2018’s severe market reversal has been nicknamed, has affected the valuation of participating companies but not their number. The market capitalization of the top 50 dropped from $44 billion to $20 billion in Q4 2018, a decrease of 55 percent.
Most cryptocurrencies worldwide lost value during this period. The global crypto market according to Coinmarketcap was valued at the end of 2018 at $130 billion. The Crypto Valley Top 50 accounts for nearly 20 percent of this market.
Singapore
Singapore, which rivals Switzerland as one of the top places for initial coin offerings for 2017 and 2018, had also faced its own winter. «The winter may last some time, but we are keeping our heads up,» said one participant at this week's inaugural Binance Blockchain Week held in Singapore.
Binance, the world’s leading cryptocurrency exchange, held its first Blockchain Week in Singapore earlier this week. They have invited over 2,000 attendees from around the globe.
