In 2025, Robert Le at PitchBook predicts that crypto VC funding is set to reach $18 billion, a 50% increase from the $12 billion seen in 2024. While this projection falls short of the $30 billion invested in the industry back in 2021, it still signifies significant growth and potential for the crypto market.
The year 2023 was a challenging one for the crypto industry, with the collapse of FTX shaking the confidence of venture capitalists and traders alike. High interest rates further exacerbated the situation, leading to investors hesitating to enter the market. However, the tide has turned in 2025 with the approval of crypto exchange-traded funds (ETFs) and a growing political focus on digital assets.
ETFs have played a crucial role in attracting generalist interest in crypto, resulting in a substantial influx of outside capital into the market. Additionally, traditional financial institutions are increasingly embracing cryptocurrencies, with Ripple forming partnerships with over 100 banks worldwide in 2024 alone. In 2025, reports suggest that 80% of Japanese banks are planning to integrate $XRP into their operations.
Even lawmakers who were once skeptical of digital assets, such as Donald Trump, are now recognizing the importance of crypto. Trump has reportedly considered Bitcoin as a strategic reserve and appointed a pro-crypto team. Regulatory developments are also expected to improve in 2025, moving away from the ‘regulation by enforcement’ approach seen in 2024.
The Blockchain Association has taken a stand against the IRS for mandating decentralized platforms to report user information, highlighting the need for legislators to understand the concept of decentralization before issuing directives. Le anticipates that blockchain technology will expand beyond the crypto industry in 2025, with new use cases emerging in sectors like energy and mobility, attracting VC funding and driving mainstream adoption.
Retail investors are benefiting from the positive developments in the crypto market, with greater liquidity and clear regulations making it easier for individuals to launch new projects and participate in the market. Projects like Wall Street Pepe ($WEPE) have seen success, raising $38 million in its first month on presale. With such fundraising momentum, the projected $18 billion in annual crypto VC funding seems achievable.
In Europe, the delisting of Tether ($USDT) from exchanges due to non-compliance with MiCA regulation has caused disruptions. However, platforms like Best Wallet offer solutions for storing and transferring $USDT regardless of location, providing a secure alternative to exchange storage. Best Wallet also features a presale aggregator for purchasing meme coins like $WEPE within the app, offering convenience and security to users.
As the market looks towards 2025 with optimism, favorable regulations and institutional adoption are expected to drive innovation and attract funding. However, it is important for investors to exercise caution and diversify their portfolios to mitigate potential losses in an ever-changing market environment. Taking calculated risks while maintaining a level-headed approach is essential for navigating the volatile crypto landscape.
