The rate of adoption in the cryptocurrency space has been growing consistently, even during the period of bearish trends.
The adoption in the cryptocurrency space has been exceptional over the past few years. The 2017 Bull Run attracted many people to the cryptocurrency space, and the market has been gaining more investors and traders since then. The rising adoption comes as awareness for cryptocurrencies continues to increase. Crypto companies are spending millions of dollars on promoting their services and educating people about cryptocurrencies.
FTX Leads the Way
Cryptocurrency companies have mostly focused on sponsorships within the sporting world. One of the most active crypto companies in terms of crypto sponsorships is FTX. The cryptocurrency exchange has spent hundreds of millions of dollars in terms of sponsorships, advertisements, and acquisitions.
FTX spent $135 million to acquire the naming rights to the arena of the NBA’s Miami Heat. The basketball-playing ground is now known as the FTX Arena. The cryptocurrency exchange also acquired esports team TSM for $210 million, the largest acquisition in esports history.
The Sam Bankman-Fried-led crypto exchange didn’t stop there. It also went ahead and paid $17.5 million for the naming rights to Cal Memorial Stadium. At the moment, FTX is also the official cryptocurrency exchange of Major League Baseball.
FTX and its sister company, Blockfolio, have also endorsed some leading sports stars in the United States. One of them is NFL quarterback Trevor Lawrence, whose deal is currently worth millions of dollars. Cade Cunningham is another star that signed an endorsement deal with Blockfolio. Tom Brady is also involved with the cryptocurrency exchange and its sister company.
While speaking at the Decrypt and Yahoo Finance Crypto Goes Mainstream event recently, FTX’s Sam Bankman-Fried said,
“There’s been some user growth, but we are really coming from behind on name recognition. We’ve been around for two and a half years. That’s a lot less long than some of the other big names in the crypto exchange business. When someone’s looking to get involved in crypto for the first time, we’ve found that they haven’t heard of FTX.”
Another cryptocurrency exchange that has been spending big in terms of sponsorships is Crypto.com. A recent report indicated that Crypto.com had spent more than $400 million in sporting sponsorships since the start of the year.
Crypto.com, like FTX, has been quite aggressive about establishing a footprint in sports. Some of its biggest deals in sports now include;
- A one-year sponsorship deal with the NHL’s Montreal Canadians in March.
- A five-year, $100 million global partnership with Formula 1 in June.
- A 10-year, $175 million branding deal with UFC in July.
- A multi-year partnership with Serie A in August.
- A three-year, $29.5 million to $35.4 million deal with Paris Saint-Germain.
Crypto.com’s partnership with Paris Saint-Germain was particularly inspired by Lionel Messi’s move to the French capital. Regarded as the world’s finest soccer star, Messi’s move to PSG attracted sponsors, and the star will be paid some part of his deal with CRO, the Crypto.com native token.
Other Crypto Entities Aren’t Left Behind
AntPool, the bitcoin mining company owned by Bitmain, also entered into a sponsorship agreement with a sporting entity. Antpool was a sponsor for the Houston Rockets in the 2017-2018 season of the National Basketball Association (NBA). StormX is another company that has also been involved in sporting sponsorships in recent months.
The sponsorships across various major sporting leagues across the world have increased the awareness of cryptocurrencies. This has resulted in the broader cryptocurrency market gaining both retail and institutional adoption over the past few years.
An increasing number of institutional investors such as hedge funds, investment firms, asset managers, pension funds, and many more are entering the cryptocurrency space and investing billions of dollars into Bitcoin and other cryptocurrencies.
As a result of the rising retail and institutional adoption, the cryptocurrency market has recorded astronomical growth in recent years. The total cryptocurrency market cap touched the $3 trillion mark for the first time a few days ago. Thus, marking a huge growth from the roughly $1 trillion it was worth at the same period last year.
The launch of various spot and futures exchange-traded funds (ETFs) and other investment products are also attracting more institutional investors into the cryptocurrency market.
Bitcoin and other cryptocurrencies have also rallied to a new all-time high as the adoption continues. Bitcoin reached a new all-time high above $69k earlier this week, while Ether set a new one close to the $5k region.
The cryptocurrency market is expected to grow even bigger over the coming months and years. Market analysts expect Bitcoin’s market cap to reach $100k before the end of the year, and that could see the total market cap reach the $4 trillion mark in the coming months.