The combined value of crypto projects based in Switzerland and Liechtenstein has witnessed a remarkable 107% year-over-year surge, reaching $382.93 billion, according to a report by Swiss venture capital firm Crypto Valley (CV VC). Ethereum Foundation, headquartered in Zug, Switzerland, takes the lead with a market cap of $273 billion, contributing significantly to this surge. Other prominent projects include Solana at $43.3 billion and Cardano at $20.8 billion.
Market Recovery Boosts Valuation
The surge in valuation is primarily attributed to the momentum gained from the overall recovery in the crypto market. Despite the rebound in token prices, the global Web3 venture capital landscape is yet to fully recover. CV VC researchers note a 55% decline in deals and a 69% decline in funding compared to 2022. In 2023, crypto firms in Switzerland and Liechtenstein raised $283.5 million across 49 deals, a significant drop from $964.3 million through 93 deals in 2022.
The number of crypto companies in Switzerland and Liechtenstein. Source: CV VC
Significant Presence in Web3 Space
Approximately 5% of all Web3 venture capital funding is now concentrated in Switzerland and Liechtenstein. The report reveals that 1,290 Web3 firms are based or headquartered in these countries, including notable entities like Cosmos, Internet Computer, Near, Polkadot, and Solana. Mathias Ruch, CEO of CV VC, emphasizes the innovative legacy of these entities, reinforcing both local and global economies.
Blockchain Adoption in the Region
Switzerland and its neighboring countries play a pivotal role in blockchain adoption. BBVA Switzerland, the Swiss branch of a major Spanish bank, recently announced its use of Ripple-owned tech firm Metaco’s Harmonize platform for crypto custody operations. Additionally, the Swiss city of Lugano made headlines by accepting Bitcoin and Tether for municipal tax payments on December 8, 2023.
Building Trustworthy Systems
Mathias Ruch highlights the report’s focus on the builders in the crypto space who contribute to delivering trustworthy systems, ultimately shaping a better way for the world to interact and transact.
The surge in valuation reflects the resilience and growth potential of crypto projects in Switzerland and Liechtenstein, despite the broader challenges faced by the Web3 venture capital landscape.