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Crypto VC Funding Surges to $4.65B in Q3, Second-Highest Since FTX
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Nov 25, 2025
Capital flowed mainly into stablecoins, AI, and blockchain infrastructure, with seven deals capturing half of all investment.
Crypto venture funding roared back in the third quarter, hitting $4.65 billion, the second-highest level since the collapse of FTX sent shockwaves through the industry in late 2022.
The surge marks a 290% jump from Q2 and reflects the strongest quarter since Q1’s $4.8 billion tally, according to new data from Galaxy Digital.
Galaxy’s head of research, Alex Thorn, said the rebound shows that venture appetite for digital-asset startups remains stronger than many expected, even if overall activity is still below the breakneck pace of the 2021–2022 bull market.
AI and Stablecoins Dominate as Crypto VC Flows Shift Toward Infrastructure
Key areas like stablecoins, AI-driven crypto tools, blockchain infrastructure, and trading technology continued to attract capital throughout the quarter, while very early-stage activity held steady.
The renewed momentum comes after nearly two years of muted investment across the sector. Venture firms pulled back sharply following the exposure of FTX’s multibillion-dollar fraud, which wiped out confidence and froze deal flow across nearly every corner of the industry.
Despite the headline jump, capital deployment was heavily concentrated. Out of 414 venture deals, just seven accounted for half of all money invested in Q3.
The quarter’s fundraising was heavily concentrated, with a handful of major players absorbing most of the capital.
Revolut led with a massive $1 billion round, followed by Kraken, which secured $500 million, and Erebor, a US-based crypto bank, which raised $250 million.
Established companies, especially those founded around 2018, captured the majority of funding. Younger firms launched in 2024, however, represented the highest number of deals, suggesting strong early-stage interest even as the broader market matures.
Thorn noted that pre-seed’s share has declined consistently over the past few years.
As more traditional institutions enter crypto and existing venture-backed firms find market fit, “the golden era of pre-seed crypto venture investing has likely passed,” he said.
Unlike earlier bull runs, the latest market cycle has not been matched by a parallel surge in venture financing.
Thorn attributes the stagnation to fading interest in once-hot categories like NFTs, Web3 gaming, and consumer crypto apps, along with fierce competition from AI startups, which continue to dominate the venture landscape.
Higher interest rates are another factor, discouraging venture allocators broadly.
At the same time, institutional investors appear to be turning toward spot Bitcoin ETPs and digital-asset treasury strategies, gaining crypto exposure through liquid, regulated products instead of early-stage bets.
Still, Thorn believes regulatory shifts, including clearer US frameworks, could renew allocator confidence.
US Maintains Venture Dominance
The United States remained the epicenter of crypto VC activity in Q3, capturing 47% of invested capital and 40% of completed deals. The UK followed with 28% of capital, while Singapore accounted for 3.8%.
Despite previous regulatory uncertainty, Thorn expects US dominance to strengthen under the crypto-friendly Trump administration.
“We expect US dominance to increase, particularly now that the GENIUS Act is law and especially if Congress can pass a crypto market structure bill,” he said.
Sources >> Crypto VC Funding Surges to $4.65B in Q3, Second-Highest Since FTX
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