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Crypto sports sponsorships see recovery in 2024 with 26 new deals

Crypto sports sponsorships see recovery in 2024 with 26 new deals

GrafaGrafa2024/09/20 03:30
By:Isaac Francis

Crypto sports sponsorships are making a measured recovery in 2024, with 26 new agreements signed after the industry faced setbacks in recent years. 

This marks a cautious return following the surge in sponsorships during 2021 and the downturn that followed. 

In 2021, the crypto sector heavily invested in sports partnerships, securing 42 new deals, including Crypto.com’s $700 million agreement to rename the Staples Center. 

However, 2022 saw a steep decline in new deals after market conditions worsened, reducing the number to 25. 

The collapse of FTX (CRYPTO:FTT) also resulted in the termination of several partnerships, including deals with the Miami Heat. 

Despite the challenges, some companies, like Bybit and Vechain, managed to continue securing substantial contracts during the market slowdown. 

Bybit finalized a $150 million deal with Red Bull Racing, while Vechain inked a $100 million partnership with the UFC. 

However, overall market caution limited further investments in sports sponsorship during that period. 

In 2023, sponsorship deals remained low, with only 8 new agreements, although 14 existing partnerships were renewed. 

Companies remained cautious due to market volatility, but some, like OKX, entered into a $70 million agreement with Manchester City, reflecting selective investment strategies. 

By 2024, the crypto industry showed signs of a modest recovery, with 26 new sports sponsorships secured. 

Noteworthy deals include Crypto.com’s sponsorship with the UEFA Champions League and Bitget’s partnership with LaLiga. 

These agreements demonstrate a gradual return of crypto brands to sports marketing, although activity remains below 2021 levels. 

While the industry is far from its previous peak, the increase in new deals suggests a slow re-entry into sports sponsorships. 

According to CoinGecko, the overall trend indicates that crypto firms are cautiously returning to this space. 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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