Is the Miami narrative about crypto dead and gone? Bear market conditions have certainly been trimming the dialogue around the most crypto-friendly market in the US, but one new report shows that it’s not all doom and gloom.
Miami’s dominant crypto-first position has been challenged by competing markets, but the city’s investment in crypto-friendly innovation and culture (not to mention its pleasant weather) has allowed the market to retain its top spot.
What other cities in the US are making blockchain initiatives and investments? Let’s dive into the new report looking at just that.
Regional Respect: Landscape View
Miami, San Francisco, Austin… oh my? Leaving aside the mainstay of technology, the back half of 2022 sees investment in innovation in the market that may surprise you. A new report from Telstra Ventures, obtained by Bitcoinist, shows that while blockchain-based investments have been growing for a while, they still have the potential to grow more than similar categories – and Miami is also a mainstay for these investments.
The people at Telstra Ventures evaluated data from more than 40,000 startups that received funding during 2021 – 2022 in 28 regions.
The crypto marketcap storyline is vastly different in the second half of 2022 compared to the first half of the year. The market has shown signs of rebounding to start 2023. | Source: CRYPTOCAP-TOTAL on TradingView.com
It’s All In The Numbers
Bear market conditions are sure to change the landscape from 2021 to 2022. In the middle of last year, it felt like the industry had been hit dry. However, these numbers only show a 5% decline in investment in the blockchain sector – compared to a 31% decline in media & advertising, a 32% decline in SaaS and enterprise/fintech, and other substantial declines in the same category.
This shows that despite the decline compared to 2021, there is still a lot of excitement and interest in blockchain-based investments despite the poor market conditions.
What does that mean for sunny south Florida? 2021 is a busy year for Miami Mayor Suarez, who is practically the public ambassador of crypto; but the situation of the market in 2022 is coming, and it’s hard. The death of FTX at the end of the year is the main pillar, because FTX is the sponsor of the Miami NBA arena; The CeFi Voyager platform also had a relationship with the Miami Heat and Heat player Victor Oladipo before it collapsed.
Therefore, when looking at the back half of 2022 relative to the back half of 2021, Miami took a hit; a Telstra Ventures report shows that in 2H 2022, Miami experienced a 17% year-on-year decline in all emerging technology categories. While other major US markets, including LA, San Francisco, Austin, Seattle and New York all took an even bigger hit in comparison, there were some markets that actually saw an uptick in investment.
Philadelphia, Dallas, Salt Lake City, and Raleigh all saw growth over the same period in broader technology investment; Could one of these markets be the next big player to draw blockchain-based investment?