PwC report points out that M&A in the crypto industry will rise by nearly 5,000% in 2021

According to a PwC report, the total value of cryptocurrency-related mergers and acquisitions rose to $55 billion in 2021, with the average deal size more than tripling from 2020 to $179.7 million.

According to a report by PricewaterhouseCoopers (PwC), the total value of cryptocurrency-related mergers and acquisitions rose to $55 billion in 2021, compared to $1.1 billion a year ago.

The U.S. leads in the sheer number of deals, accounting for 51% of all deals last year, up from 41% in 2020. Europe, Middle East and Africa (EMEA) accounted for 33% of all transactions, and Asia Pacific (APAC) accounted for 16%. In terms of deal value, EMEA led the way with $25.5 billion, compared with the US at $24.5 billion and Asia Pacific at $5 billion. Behind the rise in average deal size from $52.7 million to $179.7 million is a 2021 boom in U.S.-focused special-purpose acquisition companies (SPACs), with many $1 billion-plus mergers and acquisitions.

PwC also tracked crypto financing deals and found a 645% year-over-year increase in 2021, with a total value of $34.3 billion. Average deal size rose 143% to $26.3 million.

The PwC report noted that the diversification of the number of transactions across business sectors shows “the continued maturation of the cryptocurrency ecosystem” and heralds wider adoption of cryptocurrency services.

For what might happen in 2022, the report authors expect continued momentum. Venture capital firms and incubators will be the largest source of cryptocurrency M&A activity as SPAC action slows.

As for the specific cryptocurrency sector to focus on, Marathon Digital Inc. (MARA) CEO Fred Thiel expects the mining industry to continue to consolidate as cash-strapped miners seek to merge with stronger players.