Crypto VC Funding Surges to $4.65B in Q3, Second-Highest Since FTX

Crypto enterprise funding roared again in the third quarter, hitting $4.65 billion, the second-highest degree because the collapse of FTX despatched shockwaves by way of the business in late 2022.

The surge marks a 290% soar from Q2 and displays the strongest quarter since Q1’s $4.8 billion tally, in accordance to new data from Galaxy Digital.

Galaxy’s head of analysis, Alex Thorn, stated the rebound reveals that enterprise urge for food for digital-asset startups stays stronger than many anticipated, even when total exercise continues to be under the breakneck tempo of the 2021–2022 bull market.

AI and Stablecoins Dominate as Crypto VC Flows Shift Toward Infrastructure

Key areas like stablecoins, AI-driven crypto instruments, blockchain infrastructure, and buying and selling expertise continued to appeal to capital all through the quarter, whereas very early-stage exercise held regular.

The renewed momentum comes after almost two years of muted funding throughout the sector. Venture corporations pulled again sharply following the publicity of FTX’s multibillion-dollar fraud, which worn out confidence and froze deal move throughout almost each nook of the business.

Despite the headline soar, capital deployment was closely concentrated. Out of 414 enterprise offers, simply seven accounted for half of all cash invested in Q3.

The quarter’s fundraising was closely concentrated, with a handful of main gamers absorbing many of the capital.

Revolut led with a massive $1 billion spherical, adopted by Kraken, which secured $500 million, and Erebor, a US-based crypto financial institution, which raised $250 million.

Key Takeaways:

Bitcoin has damaged its 50-week MA, traditionally main to exams of the 200-week degree (~$65–70K)
Liquidity is thinning, volatility is rising, and positioning stays too lengthy
Tax-loss harvesting and fairness strain might add to near-term draw back
…

— Galaxy (@galaxyhq) November 24, 2025

Established corporations, particularly these based round 2018, captured the vast majority of funding. Younger corporations launched in 2024, nonetheless, represented the very best variety of offers, suggesting robust early-stage curiosity even because the broader market matures.

Thorn famous that pre-seed’s share has declined persistently over the previous few years.

As extra conventional establishments enter crypto and present venture-backed corporations discover market match, “the golden period of pre-seed crypto enterprise investing has probably handed,” he stated.

Unlike earlier bull runs, the most recent market cycle has not been matched by a parallel surge in enterprise financing.

Thorn attributes the stagnation to fading curiosity in once-hot classes like NFTs, Web3 gaming, and shopper crypto apps, together with fierce competitors from AI startups, which proceed to dominate the enterprise panorama.

Higher rates of interest are one other issue, discouraging enterprise allocators broadly.

At the identical time, institutional buyers seem to be turning towards spot Bitcoin ETPs and digital-asset treasury methods, gaining crypto publicity by way of liquid, regulated merchandise as an alternative of early-stage bets.

Still, Thorn believes regulatory shifts, together with clearer US frameworks, might renew allocator confidence.

US Maintains Venture Dominance

The United States remained the epicenter of crypto VC exercise in Q3, capturing 47% of invested capital and 40% of accomplished offers. The UK adopted with 28% of capital, whereas Singapore accounted for 3.8%.

Despite earlier regulatory uncertainty, Thorn expects US dominance to strengthen under the crypto-friendly Trump administration.

“We anticipate US dominance to enhance, notably now that the GENIUS Act is legislation and particularly if Congress can cross a crypto market construction invoice,” he stated.

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