Despite a slowdown in startup funding, investors are channeling capital into stablecoin networks and real-world asset tokenization projects.
Crypto Venture Funding Hits Multi-Year Low
The crypto venture capital market is experiencing a major contraction as investors shift away from speculative startup funding toward direct digital asset accumulation and real-world asset (RWA) infrastructure. Recent data shows that crypto and blockchain startups raised only $1.97 billion across 378 deals in Q2 2025, representing a 59% decline in funding and a 15% drop in deal count compared to the previous quarter — the second-lowest total since late 2020.
Analysts note that the long-standing correlation between Bitcoin’s price and venture funding activity has weakened, signaling a fundamental change in investor behavior.
According to Hunter Horsley, CEO of Bitwise, a crypto exchange-traded fund provider.
Digital Asset Treasuries and Infrastructure Lead Capital Flows
Instead of backing early-stage startups, investors are now allocating capital toward digital asset treasuries—companies raising funds to accumulate Bitcoin, Ether, and other major tokens. These treasury vehicles have attracted over $15 billion in 2025, suggesting that institutional players are favoring direct crypto exposure over traditional equity investments.
RWA and Stablecoin Projects Gain Momentum
Amid the funding slowdown, select onchain finance and stablecoin infrastructure firms are still drawing strong investor interest:
- Mavryk Network raised $10 million to expand its institutional-grade RWA tokenization platform, in partnership with Multibank Group to tokenize $10 billion worth of UAE properties — one of the largest such initiatives globally.
- Grvt, a hybrid exchange built on ZKsync technology, closed a $19 million Series A, aiming to scale privacy-focused onchain trading and crosschain RWA applications.
- Stablecore secured $20 million to help regional banks and credit unions integrate stablecoin services, following regulatory clarity from the US GENIUS Act, which is expected to accelerate adoption across financial institutions.
- Plural raised $7.1 million to link real-world energy assets—including solar and battery storage systems—to digital markets through tokenization, tapping into the surging demand for renewable energy in the AI-driven data economy.
The VC funding downturn reflects not a loss of confidence, but a strategic realignment toward utility-driven blockchain sectors. As stablecoin adoption surpasses $300 billion and RWA tokenization becomes central to institutional strategies, capital is migrating to projects that bridge digital finance with real-world economics.
The shift underscores a maturing market, where investors prioritize infrastructure capable of supporting trillions in future transaction volume rather than short-term speculative ventures.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.