In Australia, it appears that the blockchain and crypto sector is leading even though it is in a “declining” classification. In fact, in the Australian fintech landscape, crypto companies represent 14% of the total of 60 that closed during 2024.
Australia and the decline of the fintech landscape: the blockchain and crypto sector is the most affected
From the report Australia Fintech Landscape 2024 by KPMGIt turned out that for this year, Amid a general decline, the blockchain and crypto sector appears to be the most affected.
In practice, in the financial and technological sector, More than 7% of Australian fintech companies have closed their doors in 2024.
Specifically, about 4.5% of the 60 companies have ceased operations, while 3% have closed due to mergers and acquisitions (M&A). Most M&A deals were driven by strategic needs, with buyers looking to enhance specific capabilities.
However, of these 60 Australian fintechs closed in 2024, it appears that a good 14% are in the blockchain and crypto sector.making the category first in the relegation ranking.
This is how the text reads:
“The blockchain and cryptocurrency space was the most affected in the Australian fintech landscape, with a 14% year-on-year drop and 74 active companies in 2024.”
Australia and the closure of cryptocurrency and blockchain companies in 2024: the reasons and forecasts
In reality, the Australian fintech scene has been in decline for two years now, going from 800 companies in 2022 to 767 active companies in all sectors of activity.
Also in the specific case of the blockchain and crypto category, the report identifies the possible causes of its significant drop this year.
This is what it says:
“Globally, this year the focus has shifted from blockchain technology to AI, and investors have poured capital into the increasingly important AI space to transform their business into a forward-thinking company capable of manage AI.”
In practice, there seems to be a choice by investors to prefer Artificial Intelligence (AI) over Blockchain technology.
In any case, the report goes on to predict that the great events of this 2024such as the approval of Bitcoin spot ETFs, could act as a positive catalyst for the blockchain space.
Not only that, another factor that could favor the blockchain and crypto sector is the rate cuts that will soon also begin in Australia, which will free up capital for new alternative investments.
Kraken’s crypto derivatives offering and the launch of the Ethereum spot ETF
last month, Kraken threw a licensed broker offer in Australiadedicated to cryptocurrency-based derivatives.
In practice, Australian Wholesale Clients Can Buy Crypto Derivatives that allow them to gain exposure to the price movements of cryptocurrencies, without owning the assets.
However, last October still in australiaThe first spot ETF on Ethereum was launched: the Monochrome Ethereum ETF (IETH). This event came after Monochrome’s Bitcoin spot ETF, IBTC, launched in June 2024.
