Last year, the number of crypto VC investment deals plummeted by 60%, but a moderate recovery is expected this year

In 2025, the total amount of crypto venture capital reached $18.9 billion, an increase from $13.8 billion in 2024, but the number of transactions plummeted by 60% to about 1,200, with funding highly concentrated in later-stage projects. Digital Asset Trust (DAT) raised approximately $29 billion, attracting a large amount of institutional capital. Early-stage financing significantly slowed down, primarily due to a reduction in available VC funds, institutional investors' preference for AI projects, and regulatory clarity driving rapid expansion of mature companies.

Multiple investors expect a moderate recovery in early-stage financing in 2026, but the barriers remain high, with investors focusing more on fundamentals rather than narratives. Regulatory clarity in the U.S. 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 divergences in the intersection of crypto and AI, with some believing that hype is ahead of actual applications.

Token sales re-emerged in 2025 but did not replace traditional VC, with expectations of a hybrid financing model forming. Overall, market discipline will continue, and capital allocation will become more rational.