- Crypto VC funding surged to $3.48 billion, setting a new weekly record.
- Pantera Capital and Hack VC led $3.48 billion in crypto investments.
- Institutional investors increasingly back blockchain services and CeFi projects.
- The crypto sector sees a shift toward utility-driven investments over hype.
The cryptocurrency sector has seen an unprecedented surge in venture capital funding, with $3.48 billion raised in just one week. This figure marks a new weekly record, surpassing previous highs and showing the growing involvement of institutional investors in the blockchain industry. Major firms, including Pantera Capital, Hack VC, Sequoia, and Andreessen Horowitz, are leading the charge, indicating a shift towards sustainable investments.
Surge in Venture Capital Funding for Crypto
Between October 6 and October 12, 2025, crypto venture capital funding reached $3.48 billion. This was a substantial increase compared to previous records, including the $3.16 billion peak in November 2024. A total of 27 different projects and companies received backing during this period. The surge in funding underscores a growing confidence in the blockchain space from institutional investors, a key factor contributing to this record.
The largest portion of the funds, approximately $3–10 million, was allocated to 7 rounds, while rounds between $10 million and $20 million accounted for 5 deals. There were also significant investments in larger rounds, with 4 deals falling in the $20 million to $50 million range and another 4 rounds securing more than $50 million each. This diverse funding spread highlights the strong interest from investors across multiple sectors within the crypto industry.
Key Players and Leading Firms in Crypto VC Deals
Among the top contributors to this funding milestone, Pantera Capital led the charge, closing four rounds. Hack VC followed closely, spearheading two deals. Other prominent investors such as General Catalyst, Road Capital, Delphi Ventures, Sequoia Capital, Andreessen Horowitz (a16z), and Galaxy participated as well, each leading one round of investment. These firms represent a mix of traditional venture capital heavyweights and crypto-focused firms.
The blockchain services sector saw the most funding activity, with 12 rounds dedicated to projects in this category. Centralized finance (CeFi) projects secured the second-largest share, with 6 rounds of funding. This distribution of funding reflects a strategic shift toward more infrastructure-focused and utility-driven projects, moving away from the earlier speculative focus on areas like decentralized finance (DeFi).
Shift Toward Sustainable, Utility-Focused Ventures
The sharp rise in crypto venture capital funding this week mirrors the broader trend in the crypto industry, which has seen a shift away from speculative investments to projects with tangible economic utility. In the past, venture funding was often driven by hype and quick speculation on the future of digital currencies. However, the latest round of investments suggests a more mature approach, with a focus on projects that prioritize sustainable growth and real-world use cases.
In Q3 2025, crypto venture funding totaled $8 billion across 275 deals, indicating a healthy market despite a slight dip compared to Q2 2025. Projects emphasizing blockchain infrastructure, centralized finance, and regulatory compliance dominated funding during this period.
This reflects a growing investor preference for ventures that offer consistent cash flow and adhere to evolving regulatory frameworks. While DeFi and other speculative projects captured a smaller share of funding, this reallocation signals that the market is increasingly aligning with more stable, long-term business models.
Institutional Involvement Continues to Rise
The rise in institutional investments is one of the defining features of this funding surge. Major venture firms like Sequoia and Andreessen Horowitz have long been active in the space, but their recent participation, alongside traditional financial institutions, signals growing mainstream interest in the crypto sector.
As these institutional investors become more active, their involvement is helping to bring credibility to the crypto space, encouraging further capital inflows.
Looking ahead, experts forecast that crypto venture funding will continue to grow in 2025. Projections suggest that total funding could range from $18 billion to $25 billion, making it the strongest year since 2021. With institutions increasingly involved, the crypto market may be on track for a more stable and mature phase of growth in the coming years.
