The venture capital investment in the cryptography industry climbed $ 4.9 billion in the first quarter of 2025, marking the most active fundraising period in the sector since the end of 2022, according to a May 1 report in Galaxy.
The sharp increase represents an increase of 40% compared to the previous quarter, with 446 transactions concluded – a 7% increase in the volume of transactions, according to a report of May 1 by Galaxy.
While the high -level figure signals investors’ confidence in digital assets, a single transaction played a disproportionate role: the investment of MGX dollars in Binance represented more than 40% of all capital raised during the quarter.
Binance Transaction resumes the financing landscape
Without this agreement, total funding would have been $ 2.8 billion, revealing a decrease of 20% compared to the fourth quarter of 2024.
Nevertheless, the Binance transaction reshaped the financing landscape. He propelled the category of negotiation, exchange, loan and investment at the top of the sector classification, with $ 2.55 billion in total, a leap of 47.9%.
Excluding Binance, DEFI would have led the quarter with $ 763 million in funding.
Web3 startups dominated the number of transactions, representing the most active category with 73 offers, or 16% of the total.
They included game platforms, NFT, DAO and Metaverse companies. Exchange companies have followed with 62 offers.
For the first time since the beginning of 2021, the majority of the capital has passed in companies at a subsequent stage, with 65% of the total funding going to series A and beyond.
The pre-series activity and at an early stage remained solid but showed a slight decrease, reflecting a more prudent but targeted investment approach.
Startups based in the United States won 38.6% of the total agreements, strengthening the country’s example in the world cryptography market.
The United Kingdom (8.6%), Singapore (6.4%) and the United Arab Emirates (4.4%) followed.
The Galaxy report has also underlined a renewed correlation between the Bitcoin price and the business financing trends – a model that had been weakened in recent years but now seems to be strengthening on a multi -year calendar.
Crypto fundraising is difficult
However, fundraising remains difficult. Galaxy noted persistent opposite winds of the slowdown 2022-2023 and a change in interest from investors to artificial intelligence.
The AI sector now commands the type of attention and capital flow that Crypto made during its last bull cycle. Consequently, the venture capital funds focused on the crypto collected only $ 1.9 billion in the first quarter of 2025.
Despite these obstacles, Galaxy expects 2025 to surpass the previous year in total capital raised.
As indicated, Kaito Ai classified the paradigm as the most efficient VC Crypto company in the past 12 months, displaying a performance metric of 11.80%.
The company leads before the Alliance (10.64%), Dragonfly (8.32%), A16Z (6.94%) and Multicoin Capital (5.86%), which completes the first five.
Dragonfly, who ranks third, has invested in major projects such as Avalanche (AVAX) and near the protocol (near), which both obtained a strong traction in cryptographic space.
Meanwhile, Alliance, an crypto accelerator for web startups at an early stage, has made notable investments in the Story protocol (IP), Mantwork and Pump.Fun, a same -same Launchpad based in Solana.
Andreessen Horowitz (A16Z) has obtained fourth place, with investments in Coinbase, Uniswap, Celo (Celo), Compound and Dapper Labs, the company behind the cryptokitties.
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