New York City tops Silicon Valley as the center of crypto startups

New York City is home to the most well-funded crypto startups in the U.S.

Last year, the city attracted $6.5 billion, accounting for 46% of funding to blockchain or crypto-centric companies, according to data provider CB Insights. The largest backers were New York Digital Investment Group LLC and Celsius Network LLC, which funneled $1 billion and $750 million respectively to New York-based firms.

Mayor Eric Adams has billed New York City the “center of the cryptocurrency industry,” and accepted his first paycheck in office in Bitcoin and Ether, the digital asset underlying the popular Ethereum blockchain.

Adams has also proposed a friendly-competition with fellow crypto-enthusiast, Miami Mayor Francis Suarez, who has been aggressively courting companies to come to Florida.

Tech-hub Silicon Valley, known for its massive venture capital spending, ranked second in the nation for crypto-company funding with $3.9 billion. Elsewhere, Los Angeles and Miami both raked in $760 million.

Bitcoin and Ether, the two most popular cryptocurrencies, have struggled with a steep decline from all-time highs in November. The broader digital currency market endured a selloff in January as participants offloaded risky assets due to rising inflation and looming interest rate hikes.