he value of crypto projects in Switzerland and Liechtenstein has experienced a significant surge of 107% year-over-year, reaching $382.93 billion, according to a report by Crypto Valley (CV VC). This surge has been driven by the broader market recovery and innovation in the cryptocurrency space.
Ethereum Leads the Way
Ethereum, operated by the Ethereum Foundation, is currently the highest-valued project in Switzerland and Liechtenstein, with a market capitalization of $273 billion. Solana follows at $43.3 billion, and Cardano at $20.8 billion. The increase in valuation can be attributed to the overall recovery of the cryptocurrency market.
Global Venture Capital Funding for Web3 Yet to Fully Recover
Despite the resurgence in the token market, the global venture capital funding landscape for Web3, which includes blockchain and decentralized finance (DeFi) projects, has not fully recovered. CV VC researchers found that there were 1,031 venture capital funding transactions worth $9.8 billion for Web3 companies worldwide, representing declines of 55% and 69%, respectively, compared to the previous year.
Decline in Transactions for Switzerland and Liechtenstein
In 2023, cryptocurrency firms in Switzerland and Liechtenstein completed 49 transactions totaling $283.5 million, a decrease from 93 transactions in 2022 that raised $964.3 million. However, the two countries still account for about 5% of all Web3 venture capital funding and are home to 1,290 Web3 firms, including well-known organizations such as Polkadot, Solana, Internet Computer, Near, and Cosmos.
The Crypto Hubs of Switzerland and Liechtenstein
Switzerland and Liechtenstein have emerged as thriving crypto hubs, with a favorable regulatory environment and a growing number of crypto service providers. Liechtenstein, in particular, has been at the forefront of crypto and blockchain adoption, having introduced specific legislation on these technologies. The Swiss crypto ecosystem has also seen significant growth, with local banks offering cryptocurrency services to their customers.
The CEO of CV VC, Mathias Ruch, emphasized the importance of these crypto projects, stating,
"Each of the 1,290 entities here reflects Switzerland's innovative legacy, fortifying local and global economies. This report is not about the bulls nor the bears, but rather the builders who are delivering trustworthy systems and a better way for the world to both interact and transact."
With Switzerland and Liechtenstein continuing to thrive as crypto hubs, it is expected that their value in the crypto industry will continue to grow, attracting more investors and fostering innovation in the space. The favorable regulatory environments, combined with the presence of established crypto service providers, position these countries as key players in the future of the cryptocurrency market.