In Q1 2025, venture capital firms significantly increased their investments in crypto startups, totaling $4.8 billion. This rise indicates a renewed interest in the crypto sector.
Increase in Funding and Deal Count
Venture capital firms invested $4.8 billion in crypto startups, marking a 40% increase from Q4 2024. The number of deals also rose to 446, reflecting a 7.5% quarter-on-quarter increase.
Sector-wise Investments
The $2 billion deal from UAE's MGX into Binance accounted for nearly half of the total investment. Traditionally, the trading and exchange sector captured the most interest, receiving 47.9% of all investments.
Market Still Below Peak Levels
Despite the significant surge in venture capital investments in crypto, total volumes remain substantially lower than the peak values observed in 2021. Analysts attribute this to the impacts of the crypto market crash in 2022 and 2023, which deterred many investors.
The observed increase in venture investments in the crypto sector may signal a resurgence of interest, but current volumes are still far from record levels of the past.
