PANews August 25 news, according to The Block, industry insiders revealed that since the collapse of Terra (LUNA) and FTX in 2022, the scale of financing for cryptocurrency venture capital has sharply shrunk, as LPs have become more cautious. Cryptocurrency venture capital is now competing with ETFs and DAT for capital inflows.
The Block Pro data shows that in 2022, 329 funds raised over $86 billion, but by 2023 this number plummeted to $11.2 billion, and in 2024 it fell to $7.95 billion. As of 2025, only 28 funds raised $3.7 billion. Both the amount of financing and the number of funds are showing a sharp downward trend, reflecting that LPs are adopting stricter capital screening. Although family offices, wealthy individuals, and cryptocurrency-native funds are still actively supporting cryptocurrency venture capital, these institutions have substantially withdrawn since 2022. In the future, small funds with a scale below $50 million and strong backing may have a chance to survive, while large funds like Paradigm and a16z will also endure, but mid-sized cryptocurrency funds may become 'hollowed out' and eventually gradually disappear.
