Crypto venture funding reached $4.9 billion in Q1 2025, up 40% from the previous quarter, according to Galaxy. A $2 billion deal between MGX and Binance made up over 40% of the total. Without it, funding was $2.8 billion—down 20% from Q4 2024. Web3 saw the most deals, while U.S. firms led with 38.6% of total activity. Despite challenges from AI and cautious investor sentiment, Galaxy remains optimistic about crypto’s recovery.