Crypto was the investment world’s ‘black sheep’. Now, it’s officially back in the good graces of venture capitalists. New data from CEX.io shows that crypto startups raised a whopping $16.5 billion in just the first half of 2025—and we’re barely past summer. If this pace continues, we could be looking at the biggest crypto funding year in history.
The Numbers Don’t Lie: Crypto’s Comeback Story
The kicker: that $16.5 billion already smashes 2024’s entire yearly total of $12.2 billion. It even beats 2021’s previous record of $10.9 billion, which happened during crypto’s last major bull run.
But it’s not just about the money. Crypto now represents 5.3% of all global venture funding—the highest slice of the pie in three years. That’s a pretty big deal when you consider how venture capital works. VCs don’t throw money around for fun; they follow where they smell opportunity.
The timing isn’t coincidental either. This surge started gaining steam after the 2024 U.S. elections, suggesting that clearer regulatory signals might be giving investors the confidence they’ve been waiting for.
Where’s All This Money Going?
Finance Still Rules the Roost
No surprises here—finance projects are hogging 51% of all crypto VC deals. We’re talking about both traditional DeFi protocols and centralised finance platforms. Apparently, when it comes to crypto, everyone still wants to be the bank.
Infrastructure Gets Its Moment
Infrastructure deals are having their time in the sun, thanks largely to some massive funding rounds for companies like Bitmain and TWL Miner. These are the picks-and-shovels plays of crypto—the unglamorous but essential stuff that keeps the whole ecosystem running.
Layer 1s and 2s Take a Backseat
Blockchain layer 1 and layer 2 network deals have practically vanished, now accounting for just 2% of funding. Remember when every other crypto startup was building “the next Ethereum killer”? Those days seem to be over.
AI Meets Crypto (Because Of Course It Does)
Meanwhile, AI-focused crypto projects are quietly climbing, now grabbing 5% of total deal volume. Because if there’s one thing better than the hottest tech trend, it’s two hottest tech trends mashed together.
Quality Over Quantity: The New VC Playbook
While total funding has exploded, the actual number of deals has dropped. Translation? VCs are writing bigger checks to fewer companies. The average funding round hit a record $20 million in H1 2025—a massive rebound from the post-2022 crash doldrums.
This shift tells us something important: the spray-and-pray approach of previous cycles is dead. Investors want proven teams, real products, and actual revenue. Imagine that.
What This Means for Crypto’s Future
This funding surge isn’t just about speculation—it’s about building. With more capital flowing to infrastructure and finance solutions, we’re seeing the foundation being laid for crypto’s next phase of growth.
The regulatory clarity following recent political shifts has clearly opened the floodgates. When institutional investors feel safer, everyone benefits. And with average deal sizes hitting record highs, we’re likely to see more mature, well-funded projects emerging over the next few years.
Ready to dive deeper into crypto investment trends? Keep an eye on our market analysis for the latest funding data and startup spotlights.
FAQ
Q1: Is 2025 really on track to be the biggest crypto funding year ever?
A: Based on current data, absolutely. With $16.5B raised in just six months, 2025 has already surpassed previous record years. If the second half maintains even half this pace, we’ll see new all-time highs.
Q2: Why are layer 1 and layer 2 blockchain projects getting less funding?
A: The market has matured past the “build another blockchain” phase. Investors now prefer projects that build on existing infrastructure rather than reinventing the wheel. Plus, most major scaling solutions already exist.
Q3: What’s driving the surge in average deal sizes?
A: VCs are being more selective, choosing to make larger bets on fewer companies with proven traction. This reflects a shift from the experimental approach of previous cycles to more traditional venture investing principles.
Q4: How important was the 2024 U.S. election for crypto funding?
A: Extremely important. The funding surge correlates directly with post-election regulatory optimism. When policy uncertainty decreases, institutional capital flows more freely into crypto ventures.
Q5: Should I expect this funding pace to continue?
A: While impossible to predict perfectly, the fundamentals look strong. Regulatory clarity, institutional adoption, and proven business models suggest this isn’t just another speculative bubble—though crypto markets remain inherently volatile.
DISCLAIMER
Effective Date: 15th July 2025
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