Catenaa, Saturday, November 29, 2025-Crypto venture capital funding surged to $4.65 billion in the third quarter, marking the second-highest quarter since the 2022 FTX collapse, according to Galaxy Digital.
The 290% increase from Q2 reflects renewed investor interest, particularly in stablecoins, AI-driven crypto tools, blockchain infrastructure, and trading technology.
Out of 414 deals completed in the quarter, seven major investments accounted for half of all funding.
Revolut led with a $1 billion round, followed by Kraken at $500 million, and US-based crypto bank Erebor with $250 million.
Analysts said the concentration indicates strong institutional appetite for established firms while pre-seed activity continues to decline.
Venture funding patterns show mature firms and liquid products, such as Bitcoin exchange-traded products, are attracting more capital than early-stage consumer crypto projects.
Industry observers note fading enthusiasm for NFTs, Web3 gaming, and consumer crypto apps as contributing factors.
The United States captured 47% of invested capital and 40% of deals, followed by the UK at 28% and Singapore at 3.8%.
Experts said US dominance may expand further under the Trump administration’s crypto-friendly policies and the passage of the GENIUS Act, along with potential future legislation clarifying market structure.
Galaxy Digital research head Alex Thorn noted that despite heavy concentration in a few deals, the overall rebound signals enduring confidence in digital-asset startups.
Institutional investors are increasingly seeking exposure through regulated and liquid crypto products rather than early-stage venture, reflecting a shift in investment strategy toward infrastructure, stablecoins, and AI-enabled crypto tools.
