Crypto funding hits $4.9B in Q1 2025 with US firms leading the charge

By: cryptosheadlines|2025/05/02 23:30:01
0
Share
copy
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Crypto venture funding reached $4.9 billion in the first quarter of 2025, marking a strong comeback for the industry, according to a May 1 report by Galaxy.The total capital raised was 40% higher than the previous quarter and came from 446 deals, which also reflected a 7% growth during the period. This makes the first quarter the most active period for crypto fundraising since late 2022.Crypto VC Investments in 2025 (Source: Galaxy Digital)MGX’s $2 billion investment in Binance was a major contributor to this figure, which accounted for over 40% of the capital raised. Excluding this single deal, first-quarter funding would have stood at $2.8 billion, reflecting a 20% decline compared to the fourth quarter of 2024.Crypto investments by categoryThe Binance investment pushed the Trading, Exchange, Lending, and Investing sector to the top of the funding chart. This category attracted $2.55 billion, with a 47.9% growth rate. If Binance is excluded, the DeFi sector would have led the quarter with $763 million in capital inflows.Web3-related projects saw the highest number of deals. These included gaming, NFTs, DAOs, and metaverse initiatives, with 73 rounds representing 16% of all transactions. Trading-related firms followed with 62 deals.Crypto Investments by Category (Source: Galaxy Digital)Galaxy also reported a shift in investor focus. For the first time since the first quarter of 2021, most of the capital, about 65%, went to later-stage companies. Early-stage rounds, mainly pre-seed deals, saw a slight dip but remained strong compared to previous cycles.US startups dominated the funding scene, accounting for 38.6% of the total deal count. The UK came next with 8.6%, while Singapore and the UAE followed with 6.4% and 4.4% respectively. The uptick in US investment may reflect growing government support for digital assets.Bitcoin price correlationThe report noted a recovery in the correlation between Bitcoin’s price movements and venture investment. The trend, which had weakened since early 2023, shows signs of strength over a multi-year horizon.Crypto Investments Correlation With Bitcoin Price (Source: Galaxy Digital)Galaxy also said that fundraising remains difficult despite the year-over-year growth. Factors such as cautious allocator sentiment and the lingering impact of the 2022–2023 downturn continue to weigh on the market.Additionally, the rise of AI has shifted investor focus away from crypto. The AI sector now commands the level of attention that crypto held in 2021 and early 2022. This is evident with the decline in funds raised by crypto-focused venture funds, which fell to $1.9 billion during the first quarter.Despite these challenges, Galaxy remains optimistic, noting that 2025 is already on pace to outdo the previous year’s fundraising figures.Mentioned in this articleSource link

You may also like

A valuation of 8 billion dollars, doubling in 8 months! What makes the crypto-friendly bank Erebor Bank stand out?

Erebor is a high-profile experiment taking place at the intersection of banking, cryptocurrency, and industrial policy.

340 billion valuation: Li Yanhong's largest IPO, a seat in Kunlunxin's shares is hard to come by

As a core asset in Baidu's AI landscape, Kunlun Chip is expected to exceed Baidu's market value after going public, becoming an important bargaining chip in its turnaround battle.

Stablecoins are the "royalists" of the crypto world: Open USD brings the old currency system into play

The emergence of Open USD has shifted the competition for stablecoins from the market struggle of crypto startups to a battle for infrastructure involving traditional finance, payment networks, technology platforms, and public chain ecosystems.

Semiconductor stocks plummet, yet Anthropic wants to create a 2nm chip

Abandoning TSMC and teaming up with Samsung. Anthropic launches a self-developed 2nm chip program, challenging Nvidia and starting a battle to break through computing power costs.

Where is Zhao Changpeng's billion-dollar investment going? YZi Labs' investment landscape fully revealed

Zhao Changpeng's billion-dollar new "family office" YZi Labs investment landscape revealed: 70% of the funds are committed to the crypto ecosystem, while 30% are cross-industry bets on AI and biotechnology, launching a new capital experiment in the post-Binance era.

Ethereum Foundation Report: A Basic Guide to Ethereum for Governments and Financial Institutions

The Ethereum Foundation has released this non-technical introductory report aimed at government officials, central banks, regulators, and corporate decision-makers, explaining how Ethereum works, how it is governed, how it differs from other blockchains, and how institutions and governments are alre...

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com