$ETH The year has started on a strong note, with January 2025 VC funding surging 100% YoY, reaching $1.14B.

This significant growth signals a renewed confidence in the crypto market after the consolidation of 2024.

Excluding December’s $3B OTC-driven outlier, funding levels have normalized, with selective yet strategic investments dominating the landscape.

➜ Key Market Insights

1. Decentralized Funding Takes the Lead:

IDOs and IEOs raised $1.33B in January, surpassing VC rounds. #Ethereum led token sales with $575M, followed by Solana at $343M.

2. AI and Web3 Dominate:

Over 27% of VC deals focused on AI-based projects, with developer tools, DEXs, and payment solutions also attracting significant investment.

3. Top Players Drive Growth:

@OKX_Ventures led the market with 10 deals, while @a16zcrypto and @sequoia raised $150M for Solana’s Phantom wallet, reflecting the growing focus on infrastructure and onboarding tools.

➜ My Analysis

The doubling of VC funding year-over-year is not just a recovery, it reflects a refined and strategic confidence in the crypto market.

With a focus on infrastructure, AI-driven solutions, and decentralized tools, 2025 is shaping up as a pivotal year for the industry.

As VCs remain selective, the crypto market’s ability to absorb liquidity and deliver sustainable growth will be critical.

Follow me @TheDeFiPlug to stay updated on projects funded by reputable VCs