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Is the Miami narrative around crypto dead and gone? Bear market conditions have certainly trimmed dialogue around the most crypto-friendly markets in the US, but one new report suggests that it’s not all doom and gloom.
Miami’s once dominant crypto-first position has been challenged by competing markets, but the city’s investment into innovation and crypto-aligned culture (not to mention the appeasing weather) has allowed the market to retain the top spot.
What other US-based cities are making blockchain initiatives and investments? Let’s dive into a new report looking at just that.
Regional Respect: The Look Of The Landscape
Miami, San Francisco, Austin… oh my? Move aside tech mainstays, the back half of 2022 saw innovation investments in markets that might catch you by surprise. A new report from Telstra Ventures, obtained by Bitcoinist, shows that while blockchain-based investments have slowed, they are still seeing more growth than other comparable categories – and Miami continues to be a mainstay for those investments, too.
The folks over at Telstra Ventures evaluated data from over 40,000 startups that received funding during 2021 – 2022 across 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 certainly changed the landscape from 2021 into 2022. By mid-year last year, it felt at times like the industry was crumbling to a crisp. The numbers however, reflect just a 5% decrease in investments in the blockchain sector – compared to a 31% decrease in media & advertising, a 32% decrease in SaaS and enterprise / fintech, and other substantial decreases across comparable categories.
This suggests that despite a decline compared to 2021, there was still plenty of excitement and interest in blockchain-based investment despite unfavorable market conditions.
What did that mean for sunny south Florida? 2021 was a bustling year for Miami Mayor Suarez, who became practically a public ambassador of crypto; but 2022’s market conditions hit home, and hard. FTX’s demise late in the year was a major pillar, as FTX was a sponsor of Miami’s NBA arena; CeFi platform Voyager also had a relationship with the Miami Heat and Heat player Victor Oladipo before it’s downfall.
Accordingly, when looking at the back half of 2022 relative to the back half of 2021, Miami did take a hit; the Telstra Ventures report shows that in 2H 2022, Miami saw a 17% decrease year-over-year across all emerging tech categories. While other major US markets, including LA, San Francisco, Austin, Seattle and New York all took even greater hits in comparison, there were a few markets that actually saw upticks in investment.
Philadelphia, Dallas, Salt Lake City, and Raleigh all saw growth over the same time period in broader tech investments; could one of these markets be the next big player in drawing blockchain-based investments?