In a recent report published on January 16th by Swiss venture capital firm Crypto Valley (CV VC), it was revealed that the combined value of cryptocurrency projects based in Switzerland and Liechtenstein has experienced remarkable growth, surging by 107% year-over-year to reach a staggering $382.93 billion.
This impressive increase in valuation can largely be attributed to the broader recovery observed across the global cryptocurrency market.
Ethereum tops the charts with a market cap of $273B
Ethereum is propelled by the Ethereum Foundation, which boasts a commanding market capitalization of $273 billion, leading the pack among cryptocurrency projects based in Switzerland and Liechtenstein.
Following closely behind is Solana, valued at $43.3 billion, and Cardano, with a market cap of $20.8 billion. The upward trajectory of these projects’ valuations reflects the resurgence of confidence and enthusiasm in the crypto space.
Despite the resurgence in token values, the global Web3 venture capital landscape continues to grapple with challenges. CV VC’s researchers have identified a considerable decline in funding activity, with 1,031 deals amounting to $9.8 billion in venture capital funding for Web3 firms in 2023.
This represents a substantial decrease of 55% in the number of deals and a 69% decline in funding compared to the previous year, 2022.
In the same period, crypto companies in Switzerland and Liechtenstein secured $283.5 million in funding across 49 deals, down from $964.3 million raised through 93 deals in 2022.
Despite these challenges, approximately 5% of all Web3 venture capital funding now finds its way into Switzerland and Liechtenstein, showcasing the region’s resilience in the face of market fluctuations.
Prominent Web3 entities call Switzerland and Liechtenstein home
Switzerland and Liechtenstein have become key players in the global Web3 landscape, hosting many prominent entities. In total, 1,290 Web3 firms are based or headquartered in these countries, including well-known names like Cosmos, Internet Computer, Near, Polkadot, and Solana.
This robust ecosystem underscores the innovative spirit of Switzerland and Liechtenstein and their contributions to local and global economies.
Mathias Ruch, CEO of CV VC, emphasized the importance of these entities, stating,
“Each of the 1,290 entities here reflects Switzerland’s innovative legacy, fortifying local and global economies. This report is not about the bulls nor the bears, but rather the builders delivering trustworthy systems and a better way for the world to interact and transact.”
Switzerland and surrounding regions lead in blockchain adoption
Switzerland and its neighboring regions have earned a reputation for being at the forefront of blockchain and cryptocurrency adoption. A testament to this is the recent announcement by BBVA Switzerland, the Swiss branch of one of the largest Spanish banks, which revealed its adoption of Ripple-owned tech firm Metaco’s Harmonize platform for crypto custody operations with institutional investors.
Additionally, on December 8, 2023, the Swiss city of Lugano made headlines by announcing its acceptance of Bitcoin and Tether as valid forms of payment for municipal taxes. This progressive move underscores the region’s commitment to embracing digital currencies and blockchain technology.
