The post PitchBook predicts $18 billion in crypto VC funding for 2025 appeared on BitcoinEthereumNews.com.

PitchBook analyst Robert Le expects crypto VC funding to be “much much stronger” in 2025 compared to 2024. “We’re going to see $18 billion or more in venture capital dollars that’s going to be invested into crypto,” Le told CNBC’s Jordan Smith. That’s a 50% increase from 2024, but still less than the roughly $30 billion “that was invested in 2021 and 2022,” he added. 2023 and 2024 recap Le described 2023 as a challenging year for crypto funding due to the collapse of FTX, erosion of trust, and higher interest rates. However, 2024 started strong with positive momentum driven by spot Bitcoin exchange-traded funds, or ETFs getting approved. Despite a slowdown mid-year, “we’re probably going to end [2024] at somewhere between $11 [billion] and $12 billion of invested capital, which is still 10 to 20% more than 2023,” he said. 2025 Funding Expectations Le’s projection of $18 billion or more in crypto VC funding is a 50% increase compared to 2024. Several factors bode well for the sector, he says. They include: Generalist investors are regaining interest, signaling potential large-scale investments. Crypto-native funds have significant dry powder but require generalist participation for substantial growth. Financial institutions will play a pivotal role by leveraging their trusted relationships with regulators. Shifting focus Le anticipates a shift in focus toward application-layer investments, moving beyond infrastructure projects. Examples include: Decentralized applications (dApps) targeting non-crypto users with better risk management. Use cases leveraging crypto infrastructure for non-crypto sectors such as mobility and energy data. The analogy of AWS serving as a base for companies like Uber and Airbnb highlights the need for robust applications atop crypto infrastructure to realize its full potential, Le argues. The benefit of ‘nothing’ Le emphasized the importance of regulatory clarity for the crypto industry’s growth. He expressed cautious optimism…

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Filed under: News - @ December 29, 2024 10:46 pm