Robert Le at PitchBook predicts crypto VC funding to hit $18B in 2025, 50% more than the $12B the industry saw in 2024, though still far from the $30B invested in 2021. 2023 witnessed massive collapses such as FTX’s fall that crashed venture capitalist trusts and gave investors cold feet.
However, this year saw a remarkable positive turn with a growing legislative focus on digital assets and the approval of crypto exchange-traded funds. All indicators point to a bright future for cryptocurrency in 2025.
How ETFs and Favorable Regulations Upped 2024 Crypto Investment Trends
Le’s PitchBook forecast explains that ETFs boosted general investor interest in cryptocurrencies, driving the flow of outside capital into the market. Additionally, the year also saw a range of traditional financial institutions jump into the industry. Ripple, for instance, formed partnerships with over 100 banks globally alone in 2024. Meanwhile, there are reports that 80% of Japanese banks plan to integrate $XRP into their operations.
Lawmakers were seemingly forced to accept cryptocurrencies, with one-time skeptic Donald Trump now considering a Bitcoin ($BTC) strategic reserve while appointing a pro-crypto team. Besides the direct and indirect effects of Trump's pro-crypto stance, the power dynamic is changing, with the Blockchain Association filing a lawsuit against the IRS for forcing decentralized platforms to report user information.
Going into the New Year, Le expects blockchain technology to expand beyond the crypto industry. Meanwhile, new use cases in sectors like energy and mobility could attract further VC funding in 2025 for additional mainstream adoption.
What This Means for “Everyday” Investors Amid Remarkable $WEPE Presale
Analysts claim the above information isn't just good news for whales and institutions; but also retail investors. With greater liquidity and clearer regulations, retailers will find it easier to launch new projects and join the industry.
Recently, Wall Street Pepe ($WEPE) launched in some alignment with this crypto renaissance. The project is reportedly assembling a degen army to provide adequate knowledge and significantly alter current market dynamics. $WEPE raised $38M in its first month of presale, signaling that the $18B forecast in annual crypto VC funding doesn’t seem far-reaching.
Final Takeaway
Most tokens may be experiencing negative growth now, but the market’s prospects for 2025 appear stronger than ever. Thanks to anticipated favorable regulations and institutional adoption, expectations are reasonably high that more innovation and funding will stream into the industry.
That said, while this isn't a prediction of any gains in a bullish market trend, readers want to do their own research and diversify their portfolios towards offsetting their potential losses. Both retail and institutional investors will also do well to take calculated risks while maintaining sufficient calmness.