A new report from the Crypto Companies Forum reveals interesting data about the crypto industry in blockchain and web 3.0 in Israel. The forum's findings ar
e based on information from various sources: IVC - a database company on the Israeli high-tech market, SNC - an association that provides information on Israeli high-tech companies, Collider - a venture capital firm focusing on crypto, blockchain, and web 3.0 in Israel, as well as data from the forum's companies and other private sources in the industry.
The Israeli crypto market has raised a total of $3.85 billion in funding, with over 3,700 employees and 174 active companies operating in the Israeli crypto market.
There are 10 areas of activity in the Israeli crypto market: Risk Management, Payments/Wallets, Blockchain Development, Tokenization/NFT, Lending, Investments, DeFi, Taxes, Decentralized Autonomous Organizations (DAOs), and Insurance. Out of these areas, 41 companies are involved in blockchain development, 34 in NFTs, and 29 in investments. In 2022, 16 companies were founded, including 5 in wallets and payments, 3 in NFTs, 2 in taxes and decentralized finance (DeFi), and one in each investments, risk management, credit and lending, and insurance.
According to the report, the largest capital-raising sector is wallet development, with $1.048 billion, followed by investments with $653 million, blockchain development with $551 million, and then in descending order: risk management with $214 million, decentralized autonomous organizations (DAOs) with $103 million, various companies with $48 million, DeFi with $23 million, insurance and taxes with $14 million, and lastly, lending with $5 million. The Israeli company that raised the most capital is Fireblocks with $939 million, followed by eToro Group with $473 million, StarkWare with $261 million, Bancor Protocol Foundation with $153 million, Solidus Labs with $84 million, and Securitize with $79 million.
The majority of employees in the Israeli crypto industry are engaged in investment activities, while blockchain development and NFTs rank second and third, respectively. eToro has a significant influence in this regard, employing over 800 workers out of the 3,700 employees in the Israeli crypto industry. Fireblocks is second with 200 employees, followed by Chain reaction and Simplex with 176 employees each.
On a global scale, the estimated market value of the crypto industry exceeds $100 billion, with a total capital raised of $23 billion in 2022. International companies that have entered the crypto space include Nike, IBM, Starbucks, Gucci, Wikipedia, and others. Over the past decade, there has been a widespread adoption of digital financial assets, especially Bitcoin. The main use cases include payment transactions, investment assets, and tokens that operate on decentralized computing systems. The demand for crypto assets is growing, and by early 2023, there could be over 15 million active wallets worldwide. Despite market fluctuations, DeFi exchanges trade over $100 billion per month.
Although the usage volume of crypto in Israel is steadily increasing, it is still relatively low compared to the global average. From September 2021 to September 2022, crypto assets worth $16.3 billion were received in Israeli wallets, placing Israel in the top ten in the Middle East. According to the report, only around 10% of the Israeli population held digital assets in 2022. Based on this data, it can be estimated that the potential of the Israeli market has to become fully attained.