Although the cryptocurrency market has just gone through a tough month with a 12% drop in total capitalization, investments from venture capital (VC) funds in this sector also fell by 24% in February, but Galaxy Ventures still maintains an optimistic view on the future of the industry.

VCs Pour Money Into Crypto Despite the Decline

According to data from DefiLlama, the total investment in crypto projects in February reached only 973 million USD, a sharp decline compared to the previous month. However, Mr. Mike Giampapa, a partner at #GalaxyVentures , still believes that the long-term trend of the industry will continue to rise.

He believes that despite short-term fluctuations, the capital withdrawal environment is improving as more and more crypto companies go public or are acquired. This will drive capital flow into new projects.

A forecast from PitchBook in December also showed similar optimism, as experts estimated that VC funds could invest up to 18 billion USD in the industry in 2025, nearly doubling the annual average of 2023 and 2024 (9.9 billion USD).

"Trump Effect" Is Reshaping the Crypto Market

One of the crucial factors driving optimism in the industry is the policy of President #DonaldTrump . Since his re-election, Trump has repeatedly committed to making America the "crypto capital of the world."

A series of crypto-friendly moves have taken place:

  • The White House hosts the first crypto conference.

  • SEC withdraws lawsuits against major exchanges like Coinbase, Uniswap, Robinhood, and OpenSea.

  • Abolishing SAB 121, allowing traditional financial companies to hold crypto on their balance sheets.

  • Large banks like Bank of America are also considering launching their own stablecoin.

These changes create a new era for crypto, attracting the attention of venture capitalists and traditional financial companies.

Galaxy Ventures Bets on Stablecoin & AI

Despite maintaining a positive outlook, Giampapa does not expect a strong investment boom like in 2018 or 2021. He believes that instead of a massive influx of cash from traditional VC funds, the investment trend in 2025 will focus on more core areas.

Galaxy Ventures will focus on investing in:

  • New crypto networks & financial applications help improve the speed, cost, and performance of financial services.

  • Stablecoin & traditional finance, as these two fields are on a collision course, opening up significant opportunities for improving global payments.

  • Artificial intelligence (AI) combined with blockchain aligns with PitchBook's forecast on crypto investment trends this year.

Will 2025 Be the Breakthrough Year for Crypto?

Although the market has just gone through a tough month, major investors are still preparing to pour money into the industry. If favorable policies continue to be maintained, along with the increasing participation of major financial institutions, crypto could enter a more sustainable growth cycle compared to previous booms. #anhbacong