The cryptocurrency twilight will continue in the remaining months of 2022. Investors will shift their investments from digital currencies to blockchain infrastructure projects. This is according to a forecast by the consultancy KPMG.
Investments are declining
Global investment in cryptocurrencies fell to less than half in the first half of this year compared to the first six months of 2021. While last year, from January to June, investment in virtual currencies reached a record $32.1 billion, this year it was just $14.2 billion over the same period, according to consultancy KPMG.
Investors are moving into blockchain infrastructure projects
“Although the cryptocurrency environment experienced a collapse in the first half of this year, whether due to the unexpected incursion of Russian troops into Ukraine or the collapse of the Terra cryptocurrency ecosystem, investment in the first half of this year remained well above volumes in any year prior to 2021,” KPMG said in the report.
For the second half of this year, he expects investors to continue to move from cryptocurrencies to blockchain infrastructure projects. The goal is said to be to use blockchain to improve financial technology, Coindesk.com reported.