Written by: Yogita Khatri
Translated by: Blockchain vernacular
According to data from (The Block Pro) funding dashboard, crypto venture funding in 2024 grew by 28% year-on-year, reaching approximately $13.7 billion. Despite significant progress compared to 2023, this growth has not returned to previous highs, even though market sentiment this year is very bullish.
Looking ahead to 2025, top crypto venture capitalists maintain a cautiously optimistic stance. While most believe funding levels are unlikely to recover to the highs of 2021-2022, there is a clear consensus that startups with strong product-market fit and visible user adoption are the most likely to attract capital in the coming year.
The following are insights shared by leaders from companies such as Dragonfly, Pantera, Mult1C0in, Coinbase Ventures, and BN Labs regarding funding outlooks for 2025.
1. Dragonfly: Betting on DeFi, CeFi, stablecoins, and other areas.
Rob Hadick, a general partner at Dragonfly, stated in an interview with (The Block) that significant growth in crypto venture funding is expected in 2025, driven by factors including a loosening of the U.S. regulatory environment, potentially sustained token price increases, and increased institutional capital. However, Hadick believes that funding levels will not return to the highs of 2021-2022 for a 'long time,' reflecting a cautious attitude among venture capitalists about repeating past mistakes.
Dragonfly will continue to focus on supporting founders who excel in areas with validated product-market fit, including decentralized finance (DeFi), scaling platforms, centralized finance (CeFi), and stablecoins/payments. While emerging fields like crypto AI and decentralized physical infrastructure networks (DePIN) are also on the radar, Hadick believes they are still in the 'experimental' phase.
Conversely, Hadick indicated that as the focus shifts to emerging industries, investments in categories like security, tokenization, and interoperability may decline. He also predicts that decentralized social media will face challenges due to its lack of scalability and product-market fit.
2. Pantera: Optimistic about crypto-AI, DePIN, and new Layer 1 blockchains.
Lauren Stephanian, a general partner at Pantera Capital, stated in an interview with (The Block) that funding in crypto venture capital is expected to grow in 2025 as investors are more willing to deploy capital in a government that supports crypto in the U.S.
However, Stephanian mentioned that 'bull markets do not last forever,' so it remains to be seen 'when investment deployment will begin to slow down in the coming year.'
Pantera will continue to invest broadly in the crypto and blockchain space, particularly optimistic about crypto-AI, decentralized physical infrastructure networks (DePIN), and new Layer 1 blockchains that support more application-layer functionalities.
3. Mult1C0in: Continuously optimistic about the Solana ecosystem.
Mult1C0in Capital is currently focusing on expanding its investments in decentralized finance (DeFi) applications, particularly within the Solana ecosystem. This year, key on-chain metrics for Solana have outperformed Ethereum and its Layer 2 ecosystem. 'We expect this trend to continue; applications and protocols on Solana will become significant winners in the next cycle, as more users, capital, issuance, and activity migrate to Solana's ecosystem,' said Kyle Samani, co-founder and managing partner of Mult1C0in Capital, to (The Block).
Samani believes Ethereum will continue to face challenges and may even fall into a prolonged decline due to fierce competition from Solana and other faster, cheaper blockchains. 'Unless Ethereum can catch up, developers, users, and capital will migrate to other chains that better meet their needs,' he added.
In addition, Mult1C0in is also optimistic about stablecoins. Samani described stablecoins as 'one of the greatest technological and financial innovations of our lifetime.'
'Stablecoins have the opportunity to become an undeniable force in 2025,' Samani stated. 'The world wants dollars, and stablecoins are the most effective way to obtain dollars. The design space is extremely broad, and we are still in a relatively early stage of the adoption curve.'
4. Coinbase Ventures: Focusing on on-chain economy.
Hoolie Tejwani, head of Coinbase Ventures, stated in an interview with (The Block) that the institution is expected to be 'very active' in 2025 and beyond, with the ability to seize market opportunities. The company is optimistic about regulatory progress in the U.S., especially due to the pro-crypto Donald Trump administration and the incoming pro-crypto Congress in January 2025.
Tejwani stated that Coinbase Ventures will continue to invest broadly in the on-chain economy, guided by 'where the best and most talented builders are putting their time and energy.' The company is optimistic about the application layer, believing that as infrastructure matures, applications with internet-scale potential finally become possible. Areas of focus include stablecoin payments and finance, the intersection of crypto and AI, on-chain consumer applications (such as social, gaming, and creator applications), and DeFi innovations.
At the same time, Coinbase Ventures has not completely abandoned investments in the infrastructure layer, as there are still unresolved challenges and new opportunities in the tooling space, Tejwani added.
5. BN Labs: Prioritizing fundamentals and user adoption.
As BN's venture capital and incubation division valued at $10 billion, BN Labs is a 'evergreen' investor. Regardless of market cycle fluctuations, the company will continue to support Web3, AI, and biotech startups, according to its investment director Alex Odagiu in an interview with (The Block).
BN Labs expects strong momentum in crypto venture funding in 2025, but will still 'focus on fundamentals' rather than price fluctuations or market hype. Odagiu emphasized that projects with real-world application scenarios, product-market fit, excellent teams, and sustainable revenue models are most likely to succeed.
6. Galaxy Ventures: Optimistic about stablecoins and tokenization.
Galaxy Ventures is optimistic about the growth potential of stablecoins and tokenization in 2025. The company's partner Will Nuelle told (The Block) that stablecoins, especially in the payment sector, show strong product-market fit and remain a key area for capital deployment.
Although the adoption of tokenization is still lagging behind stablecoins, Nuelle believes it has tremendous potential for investors. Galaxy Ventures plans to further explore these opportunities. However, Nuelle is more pessimistic about metaverse-related projects, expecting funding in that area to lag in 2025 due to a lack of clear adoption signs.
7. Hashed: Cautiously optimistic about 2025.
Simon Seojoon Kim, CEO and managing partner of Hashed, holds a cautiously optimistic view for 2025. He stated that although Trump's comments about treating Bitcoin as a U.S. financial asset suggest a possible shift in institutional sentiment, funding levels are unlikely to return to the peaks of 2021-2022. Kim added that if a macro or political 'black swan' event occurs, this situation could change significantly.
Kim points out that key drivers for 2025 may include clarity in the U.S. regulatory framework, increased institutional activity in Asian markets, and advancements in infrastructure supporting real-world applications. However, he also warns that regulatory setbacks, macroeconomic uncertainty, and geopolitical tensions could suppress growth.
Hashed's investment priorities for 2025 include data infrastructure, institutional-grade DeFi applications, regulated stablecoin payment systems, and crypto and AI infrastructure. Kim believes these areas have clear product-market fit, compliance paths, and reliable revenue potential. In contrast, he expects funding for GameFi projects lacking sustainable economic models, undifferentiated Layer 1 and Layer 2 protocols, consumer-grade DeFi applications in restricted regions, and NFT platforms lacking clear utility or revenue models to decline.
Hashed plans to complete fundraising for its third venture fund in the first quarter of 2025 and launch a new investment tool in Abu Dhabi to facilitate direct token investments under the region's regulatory framework. He stated that this strategic expansion aims to address the limitations faced by existing domestic funds in Korea regarding direct token investments due to local regulations, but did not disclose the target fund size.
8. Hack VC: Betting on crypto and AI, infrastructure, and DeFi.
Ed Roman, co-founder and managing partner of Hack VC, told (The Block) that unless a black swan event occurs, crypto venture capital funding is expected to 'grow significantly' in 2025. Roman attributes this to crypto-friendly government policies and reignited enthusiasm among Web3 entrepreneurs.
Hack VC focuses primarily on three areas: crypto and AI, infrastructure, and DeFi. Roman mentioned that the crypto space offers unique opportunities in multi-layer AI stacks due to decentralized physical infrastructure networks (DePINs), providing advantages over traditional Web2 cloud solutions. 'This is a trillion-dollar market serving Web2 customers,' he said.
In terms of infrastructure, Hack VC is optimistic about scalability protocols, modular infrastructure, Web3 security, maximum extractable value (MEV) improvements, and account abstraction technology. These innovations significantly enhance the Web3 tech stack and improve the user experience of decentralized applications (dApps).
In the DeFi space, Hack VC believes this is a 'once-in-a-generation opportunity to streamline the financial system.' Roman views stablecoin-based payments as foundational to this system, with broad real-world application potential, representing 'a trillion-dollar market.' However, he is less optimistic about NFTs, predicting that most will depreciate, with only top-tier assets retaining value.
9. Portal Ventures: Supporting integrated platforms.
Evan Fisher, founder and managing partner of Portal Ventures, expects a return of market 'animal spirits' in 2025, but financing levels will not return to the highs of 2021-2022 due to the unique macroeconomic environment of those two years.
Fisher told (The Block) that Portal Ventures is optimistic about platforms that provide both infrastructure and applications, as these platforms can control user experience and build practical scenarios. However, he predicts that investment in heavier infrastructure projects (such as zero-knowledge development platforms and middleware) will slow down due to a lack of customers and sustainable business models.
10. Blockchain Capital: Focusing on multiple areas, including stablecoin infrastructure and DeFi.
Kinjal Shah, a partner at Blockchain Capital, expects funding levels to rise in 2025 as the market continues to be strong. However, she believes that funding sizes will not return to the highs of 2021-2022, as that boom was influenced by broader macroeconomic trends.
Blockchain Capital will continue to maintain an opportunistic investment approach, focusing on stablecoin infrastructure, innovative distribution models, and DeFi platforms that connect institutional and retail users.
