Blockchain interest dropping, DLT in trouble?
It would appear that interest in blockchain has been dropping of late, as suggested in a recent report from CB Insights. While fluctuations do occur, the general trend that blockchain has been following for years was an upward movement. If investments in this innovative technology start trickling down, developments based on the technology are likely to lose steam.
In a recent report by Bloomberg, the details involving the data gathered by the firm CB Insights appear to show blockchain investments are showing a drastic fall this year.
Bitcoin, underpinned by blockchain technology, has regained some of its former prominence, hovering at around $10,000 right now, compared to the measly $3,000 that it fell to in 2018. In contrast, VC investment in blockchain comes up to only 227 deals in 2019. This amounts to a little over $784 million, which then puts investments in the industry to hit only $1.6 billion for the year.
This is a huge slump compared to the investments that 2018 saw, which amounted to $4.1 billion, which will put the figure at a 60 percent reduction. This is a serious problem that might cause delays with regards to developments in the DLT sphere.
Just to make matters worse, it would appear that large corporations are putting in less money into blockchain, as well. This is despite the fact that there are more and more entities creating their own digital currency, including Facebook and JPMorgan.
Even the success rates that projects that were funded are taking a hit, Reuters recently reports. A review of 33 projects involving major banks, exchanges and technology firms announced over the past four years showed that around a dozen of these projects have not gone past the testing phase. Those that did go beyond are yet to see widespread adoption.
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