Last year, the number of crypto VC investment deals plummeted by 60%. This year is expected to see a moderate recovery.

ChainCatcher Message: In 2025, the total amount of crypto venture capital reached $18.9 billion, up from $13.8 billion in 2024, but the number of transactions plummeted 60% to approximately 1,200 deals, with funds highly concentrated in later-stage projects. Digital Asset Vault (DAT) raised about $29 billion, attracting significant institutional capital. Early-stage funding has slowed considerably, mainly due to reduced available VC funds, institutional investors’ preference for AI projects, and regulatory clarity driving mature companies to expand rapidly. Several investors expect a mild recovery in early-stage funding in 2026, but the bar remains high, with investors focusing more on fundamentals than narratives. Clarification of US regulations is seen as a key catalyst. Investment hotspots are concentrated in stablecoins and payments, institutional-grade infrastructure, prediction markets, RWA tokenization, and DeFi. There are disagreements in the intersection of crypto and AI, with some believing hype is ahead of actual applications. Token sales reemerged in 2025 but did not replace traditional VC, with a hybrid financing model expected to form. Overall, market discipline will continue, and capital allocation will become more rational.