Coin WorldSaturday, Jul 12, 2025 6:42 pm ET

1min read

The second quarter of 2025 saw a remarkable resurgence in venture capital funding for the cryptocurrency sector, with a total of $10 billion invested. This figure represents the highest quarterly funding since early 2022, driven by a significant increase in Bitcoin prices and a renewed willingness among investors to take on risk. According to CryptoRank, the data underscores a notable uptick in deal activity, particularly in June, which saw $5.14 billion in funding—the highest monthly total since January 2022. This surge aligns with Bitcoin's rally above $100,000, encouraging investors to re-engage with the sector.

Several major players in the crypto VC space secured substantial funding rounds. Strive Funds, founded by Vivek Ramaswamy, raised $750 million for Bitcoin-focused alpha strategies in May. TwentyOneCapital followed with $585 million in April, and Securitize managed to secure $400 million. Other notable raises included Kalshi with $185 million, Auradine with $153 million, ZenMEV with $140 million, and Digital Asset with $135 million.

Coinbase Ventures, the venture capital arm of Coinbase, was the most active investor, executing 25 deals in the second quarter. Other prominent investors included Pantera Capital, Animoca Brands, and Andreessen Horowitz. Paradigm led in the number of lead investments, while Galaxy Digital closed its first external venture fund at $175 million, surpassing its initial target to back high-growth crypto subsectors such as stablecoins, tokenization, and payment rails. Amsterdam’s Theta Capital also added over $175 million to its fund-of-funds to support early-stage blockchain startups.

CryptoRank’s data reveals that while seed-stage deals still command the largest share of activity at nearly 19%, strategic and Series A rounds are steadily growing, with 14% and 6% respectively. Interest in mergers and acquisitions (M&A) is also picking up, with a share of around 10%, as distressed opportunities continue to emerge in the sector. The rebound in venture funding comes amid muted memecoin investment trends. Additionally, monthly crypto fundraising throughout April, May, and June was led by blockchain services, consistently outpacing decentralized finance (DeFi) and centralized finance (CeFi).