Why Q3 2025 Became a Golden Quarter for Crypto VC: Opportunities and Warnings Behind the $4.65B Surge

Background: Why did fundraising surge in Q3?

According to statistics from multiple institutions, in the third quarter of 2025, venture capital related to cryptocurrencies and blockchain reached approximately $4.65 billion. This figure represents a significant increase compared to the previous few quarters and is second only to the financing scale of the first quarter of 2025. One key reason is the large financing of several major projects: just 7 transactions accounted for about half of the total investment amount. With market sentiment improving and institutional capital returning, the cryptocurrency and blockchain industry has gained more attention, with “hard power” projects such as infrastructure, compliant stablecoins, and on-chain infrastructure becoming preferred funding targets.

Investment structure analysis: large projects + mainly post-investment companies

Despite a significant increase in overall financing amounts, funding distribution clearly favors large projects and later-stage companies—nearly 60% of funds flow towards these targets. Unlike the extensive experimentation with early-stage, high-risk projects during the bull market of 2021–2022, current investments are tending towards caution and stability. The proportion of funds going to pre-seed/seed round projects is declining. In popular sectors, infrastructure construction (underlying protocols, blockchain infrastructure), stablecoin platforms, blockchain-AI hybrid projects, and compliant exchanges/banks/service platforms are receiving the most attention. Clearly, the market is seeking long-term value, rather than just short-term speculation.

Industry recovery + asset performance warming up synchronously

This round of venture capital enthusiasm is not isolated, but synchronizes with the recovery of the entire encryption market. According to industry reports, the total market value of the encryption market is expected to grow by approximately 16.4% in Q3 2025, reaching about 4 trillion USD. The market value of stablecoins has also reached an all-time high, with a significant increase in the total market value of the top 20 stablecoins during the quarter. At the same time, indicators such as DeFi ecosystem, total value locked (TVL), and trading activity are performing well: showing that funds, technology, and the usage end are all recovering in sync. The rebound in the prices and trading depth of mainstream cryptocurrencies has also injected confidence into investors and funds. Overall, this is a recovery of the “capital-market-ecosystem” tripartite integration.

Insights for Ordinary Investors / Startups

For ordinary investors or those interested in blockchain entrepreneurship, this wave of Q3 venture capital enthusiasm offers several important insights:

• Preferred infrastructure and compliance projects: Compared to speculative coins, NFTs, or high-risk projects, infrastructure, compliant stablecoins & service platforms are more likely to attract large institutional investments and have greater long-term value.
• Focus on mature projects and later rounds: Current funding is flowing more towards later-stage companies, which means there are higher requirements for stable growth and implementation capabilities. For entrepreneurs, if they can demonstrate a clear business model and compliance pathway, they will be more likely to attract attention.
• Be cautious with early-stage / pre-seed projects: Although the number of early-stage projects is still considerable, the proportion of those securing funding is limited, and the risk and return can fluctuate significantly. Ordinary investors should be prepared for risk control and long-term holding if they participate.
• Focus on the overall market and macro environment: The recovery of venture capital, the rebound of asset market value, and the improvement of the technology ecosystem work together. However, if there are changes in the macro economy or regulatory policies, the market may also experience fluctuations. It is recommended to stay alert and respond flexibly.

In summary, the venture capital boom in the third quarter of 2025 is not only a concentrated release of market recovery but may also serve as the starting point of a new cycle. For investors and entrepreneurs who are willing to patiently lay out their strategies and focus on practicality and compliance, this is a rare opportunity.