Crypto VC Funding May Jump 50% in 2025
Analysts predict funds to flood into blockchain projects, shifting focus from infrastructure to real-world applications.
Crypto VC funding will hit $18 billion in 2025, a 50% jump from last year's estimated $11-12 billion haul, predicts PitchBook analyst Robert Le.
Three key factors are driving this predicted surge.
Generalist investors are returning after sitting on the sidelines during crypto's post-FTX recovery
Crypto-native funds are sitting on mountains of dry powder — capital raised but not yet deployed
Regulatory clarity under Trump's administration has created breathing room for ambitious projects
This matters because previous funding cycles have directly preceded broader crypto adoption waves. The 2021-2022 peak saw annual investments reach $30 billion before the market collapsed under FTX's shadow.
"We're not headed back to the speculative mania of 2021, but something potentially more sustainable," Le noted in his analysis.
March alone saw the average crypto deal size jump to $60 million, an increase from recent years. Mega-funds like Katie Haun's $1 billion raise are leading the charge.
Crypto investing is evolving from infrastructure obsession to application innovation.
"The funding focus has shifted dramatically toward application-layer projects targeting non-crypto audiences, This means decentralised applications designed for everyday use in mobility, energy data, and institutional finance," Le explained.
Farcaster's $150 million raise exemplifies this trend — a social platform with blockchain underpinnings but mainstream aspirations. The predicted funding surge signals a maturing market transitioning beyond speculative trading.
For users, this means:
More user-friendly applications that don't require crypto expertise
Institutional-grade tools making blockchain technology more accessible
Deeper integration with traditional finance systems
Le points to a significant risk: the absence of retail investor enthusiasm.
While institutions are diving in, everyday investors remain cautious after the market's dramatic boom-and-bust cycle. Without their participation, crypto's ecosystem risks becoming another walled garden for financial elites — precisely what it was designed to disrupt.
The forecasted funding boom also depends heavily on regulatory clarity. While Trump's administration has signalled crypto-friendly policies, legislative progress remains uncertain.
Is this the beginning of crypto's institutional era? Or just another funding cycle? The answer lies somewhere between $18 billion and crypto's ability to finally deliver products people actually use.