Crypto VC Activity Hits 2025 Low

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Venture capital activity in the cryptocurrency sector reached its lowest level of 2025, with May recording just 62 investment rounds – matching levels not seen since January 2021, per RootData analytics.

While the deal count slumped, capital deployment remained robust at $909 million, ranking as the year’s second-highest monthly total behind March’s $2.89 billion.

Market analysts attribute the contraction to multiple headwinds.

“We’re observing the combined impact of volatile crypto prices and shifting macroeconomic conditions,” noted Aurelie Barthere of Nansen, pointing to January’s market peak followed by April’s rebound and May’s stagnation amid trade policy uncertainties.

Sentora’s Patrick Heusser added: “The current high-rate environment and bond market instability are creating challenging conditions for risk assets. Most current transactions reflect market consolidation rather than expansionary investments.”