Tech startups operating in Southeast Asia’s decentralized finance (DeFi) ecosystem have raised nearly $ 1 billion in equity funding this year, according to data compiled by DealStreetAsia.
Financing has seen a more than six-fold surge in 2020, marking an important milestone in the adoption of cryptocurrencies and financial infrastructure built on blockchain technology.
Cryptocurrency exchanges accounted for the majority of trading volume and value compared to other DeFi categories, but the rise of Axie Infinity, a Vietnam-based Sky Mavis monster pet game, has made a global wave. I woke it up.
Promoted primarily by Philippine users, Axie’s non-fungible tokens have become the most traded NFT collection to date with a historical trading volume of approximately $ 4 billion as of December 17. Thanks to Axie’s success, SkyMavis earned $ 152 million in October. This is the biggest deal. To date, the Southeast Asian DeFi ecosystem has seen its valuation surge to $ 3 billion.
Total equity funding for startups in the DeFi ecosystem by major product or service category since 2014
Source: DealStreetAsia, DATA Vantage
Almost all DeFi categories grew exponentially in 2021. However, this explosive growth was primarily speculation that fueled the dramatic rise in cryptocurrencies and NFTs during the pandemic, when social and economic blockades caused large-scale reallocations of discretionary spending and savings. It was a reaction to the activity.
The rise of DeFi in Southeast Asia has yet to have a meaningful impact on the real world or bring sustainable value to the virtual world. This can change once institutional recruitment reaches a meaningful scale, but industry insiders say it will take some time before this happens.
Meanwhile, the flow of money to DeFi startups has stimulated new innovations. New protocols and infrastructure have been built to address key challenges such as blockchain scalability and interoperability between different networks. The 2021 fundraising campaign also shows that blockchain adoption can be carried out in a variety of industries.
To understand the data available, DealStreetAsia talks to top decision makers in companies investing in the DeFi ecosystem, including Sequoia Capital India, Vertex Ventures, Tribe Accelerator, Novum Alpha, and Matrix Asset Management. rice field. Get the DealStreetAsia Southeast Asia Decentralized Finance Status 2021 Report to read industry insights and access actionable funding data.
