Ethereum leads growth as Switzerland and Liechtenstein become a haven for Web3 firms despite global VC funding dip.
Recent reports have highlighted a significant surge in the value of cryptocurrency projects based in Switzerland and Liechtenstein, with a year-over-year increase of 107%, reaching a staggering $382.93 billion. This growth is primarily driven by the recovery of the broader crypto market, with Ethereum leading the charge, boasting a market capitalization of $273 billion. Other notable projects contributing to this rise include Solana and Cardano, which are also part of the region's burgeoning crypto ecosystem.
While the local crypto scene in Switzerland and Liechtenstein is flourishing, the global Web3 venture capital landscape tells a different story. There has been a noticeable decline in venture capital funding for Web3 projects worldwide. Despite this downturn, the two countries have managed to secure a significant portion of the remaining investment, accounting for about 5% of all Web3 venture capital funding. In 2023, Swiss and Liechtenstein crypto firms raised $283.5 million, although this was a drop from the $964.3 million raised in 2022.
The region is not just a hotbed for cryptocurrency valuations but also a hub for innovation in the Web3 space. Currently, there are 1,290 Web3 firms based in Switzerland and Liechtenstein, including major players like Cosmos and Polkadot. This concentration of firms is indicative of the supportive and crypto-friendly regulatory environment that both countries offer, which has been a key factor in attracting and nurturing these high-tech enterprises.
