Venture capital in cryptocurrency is expected to surge to 18 billion USD by 2025. This growth is driven by a stable regulatory environment and increased institutional investment. The investment focus will shift towards practical applications like AI blockchain and Decentralized Finance (DeFi).
Despite challenges in 2024, including price declines of Bitcoin, venture capital funding is projected to reach 11 to 12 billion USD. This represents a 10-20% increase over 2023, yet still falls short of the greater market expectations, signaling a fluctuating investment landscape.
The return of institutional investors is pivotal, as they are expected to drive substantial capital into the market. Pairing with regulatory improvements, this shift fosters confidence among investors. Additionally, attention is expected to move towards applications that leverage existing blockchain infrastructure.