Is Miami still a home for crypto? This report says yes
Is the Miami narrative around crypto dead and gone? Bear market conditions have certainly trimmed the dialogue surrounding the most crypto-friendly markets in the US, but a new report suggests 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 in innovation and crypto-friendly culture (not to mention its pleasant weather) has allowed the market to retain its top spot.
What other US-based cities are making blockchain initiatives and investments? Let’s dive into a new report that looks at just that.
Regional respect: the appearance of the landscape
Miami, San Francisco, Austin… oh my god? Technology mainstays aside, the back half of 2022 saw innovation investments in markets that may surprise you. 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 these investments as well.
The folks 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 to 2022. By the middle of last year, it felt at times like the industry was crumbling into a sharper. However, the numbers only reflect a 5% decline in investment in the blockchain sector – compared to a 31% decline in media and advertising, a 32% decline in SaaS and enterprise/fintech, and other significant declines across comparable categories.
This suggests that despite a decline compared to 2021, there was still a lot of excitement and interest in blockchain-based investments despite adverse market conditions.
What did that mean for sunny South Florida? 2021 was a busy year for Miami Mayor Suarez, who practically became a public ambassador for crypto; but 2022’s market conditions hit, 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 went under.
Consequently, when looking at the back half of 2022 compared to the back half of 2021, Miami took a hit; The Telstra Ventures report shows that in 2H 2022, Miami saw a 17% year-on-year decline across all emerging technology categories. While other major US markets including LA, San Francisco, Austin, Seattle and New York all took even bigger hits in comparison, there were a few markets that actually saw investment pick up.
Philadelphia, Dallas, Salt Lake City and Raleigh all saw growth over the same time period in broader technology investment; could one of these markets be the next big player in underwriting blockchain-based investments?
