According to a May 1 report from Galaxy, Crypto Venture Funding reached $4.9 billion in the first quarter of 2025, marking a strong comeback for the industry.
Total capital raised was 40% higher than the previous quarter, and came from 446 transactions. This also reflects 7% growth over the period. This will mark the first quarter of crypto funding since late 2022.
MGX’s $2 billion investment in Binance was a major contributor to this figure, accounting for more than 40% of its capital. Excluding this single transaction, the first quarter’s funds were $2.8 billion, reflecting a 20% decline compared to the fourth quarter of 2024.
Cryptocurrency investments by category
Binance Investment has pushed the trading, exchange, lending and investment sectors to the top of its funding chart. This category attracted $2.55 billion, with a growth rate of 47.9%. If Binance had been ruled out, the Defi sector would have led the quarter with a capital inflow of $763 million.
Web3 related projects saw the most transactions. These include Games, NFTS, DAOS and Metaverse Initiatives, with 73 rounds accounting for 16% of all transactions. The trading-related companies continued to do 62 transactions.
Galaxy also reported a change in investor focus. For the first time since the first quarter of 2021, most of the capital was around 65%, going to late stage businesses. There were small dips seen mainly in pre-seed trading, early stage rounds, but remained strong compared to previous cycles.
US startups dominated the funding scene, accounting for 38.6% of total deals. The UK came next at 8.6%, while Singapore and the UAE continued at 6.4% and 4.4% respectively. The rise in US investments may reflect increased government support for digital assets.
Bitcoin price correlation
The report focused on a recovery in the correlation between Bitcoin price movements and venture investments. This trend, which has been weakening since early 2023, shows signs of multi-year horizon intensity.
Galaxy also said fundraising remains difficult despite year-over-year growth. Factors such as careful allocator sentiment and the prolonged impact of the 2022-2023 recession continue to weigh markets.
Furthermore, the rise of AI has shifted investors’ focus away from the crypto. The AI sector is currently ordering the level of attention that Crypto held in 2021 and early 2022. This was down to $1.9 billion in the first quarter, as it has revealed a decline in funds raised by Crypto-focused venture funds.
Despite these challenges, the Galaxy remains optimistic, noting that 2025 is already at a pace that surpasses previous year’s funding figures.
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