The cryptocurrency VC market makes a strong comeback: Q2 raised over 10 billion USD driven by institutional momentum.

The total amount raised in the global crypto market has surpassed 10 billion USD, marking the highest level in the past three years.

Supported by the policies of the US government and large-scale investments, the crypto market is experiencing its strongest recovery phase in the past three years.

Overview of Cryptocurrency Fundraising

The latest report from the data platform CryptoRank shows that in the second quarter of 2025, the total amount raised in the global crypto market has exceeded 10 billion USD. This figure is a symbolic milestone and a clear signal that the cryptocurrency industry is entering a phase of recovery and strong reshaping.

This reflects the increasing participation of institutional investors and the growing support from governments.

One of the fundamental drivers is the more crypto-friendly policies of the new U.S. administration. After several years of regulatory uncertainty and even hostility during the 2022–2023 period, the market is now receiving new "oxygen" to expand. This new support is helping to attract capital strongly.

A notable change is also taking place in the structure of capital flows. No longer are funds pouring into early-stage projects with unfinished products as they did in the previous bull run.

Instead, the late-stage funding rate is rising rapidly. This reflects the growing confidence in projects that have proven their ability to build products. It also highlights their success in developing a user base and generating sustainable revenue.

In addition, IPO and M&A transactions are operating stronger than ever, indicating a significant shift in the market. This shows that the market is no longer a playground for small test groups but is shifting towards the scale of actual fintech businesses.

Transactions such as exchanges acquiring DeFi startups indicate a growing trend in the industry. Additionally, blockchain infrastructure companies like Circle, which are currently trading in the US market, demonstrate that raising crypto capital is becoming more "mainstream" in the eyes of traditional finance.

This maturation is driving a more selective and higher quality flow of capital. Investors are no longer chasing short-term "trends" but are starting to assess operational efficiency, business models, and the ability to create real value.

As many Web3 products have moved past the experimental stage to serve millions of real users, the crypto market is undergoing a significant transformation. It is evolving from a "technology laboratory" into a global financial technology ecosystem.

Future Prospects

Mason Nystrom, an investor at Pantera Capital, recently shared insights on the current state of the crypto VC landscape through a series of posts on X. The posts reveal structural changes in approaches to fundraising, investment selection, and capital development strategies. While early 2025 still shows signs of difficulty, there are "hot spots" that founders and followers should not overlook.

Nystrom predicts that the token will become the main investment vehicle instead of the traditional structure of token + equity. Each token will represent the value and profit potential of the project.

Fintech VCs are shifting towards cryptocurrency, paving the way for platforms in payments, digital banking (neobanks), and tokenized assets. VCs that do not engage in fintech risk being left behind.

"Liquid Venture" - investing through liquidity tokens - is becoming a trend. The capital flow is more flexible, participation and withdrawal are easier, and governance is more flexible. Funds are also starting to use their capital to hold BTC like Metaplanet and ETH like Fenbushi Capital to benefit in the long term.

"Cryptocurrency continues to innovate in forming a new capital market. And, as more assets move on-chain, many companies will seek to establish on-chain capital first." Nystrom stated.

However, this does not mean that the road ahead will be smooth. The industry is becoming more competitive, requiring projects to have a clear strategy, professional execution, and superior technology. Macroeconomic factors and new capital are merely catalysts—true success will depend on the ability of each team to adapt and innovate continuously.

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