According to Galaxy’s latest report, crypto venture capital rebounded sharply in Q1 2025, with $4.8 billion invested across 446 deals, marking a 54% increase in capital and 7.5% growth in deal count quarter-over-quarter.
Despite the strong topline figure, the spike was largely driven by a single outlier: MGX’s $2 billion investment in Binance, which accounted for over 40% of total capital deployed. Excluding that one transaction, venture investment actually fell to $2.8 billion, representing a 20% decline compared to Q4 2024.
VC Activity Still Lagging Behind Bitcoin
Historically, venture capital investment in the crypto space has closely mirrored Bitcoin’s price trends. However, since early 2023, this correlation has weakened. Although Bitcoin has soared, venture funding has remained sluggish, due in part to a cautious allocator environment and the market’s dominant focus on Bitcoin-centric narratives, leaving many altcoin and Web3 themes from 2021 out of the spotlight.
While Q1 2025 offered a glimpse of renewed alignment between price action and venture activity, the data suggests true recovery in crypto VC may still depend on broader narrative shifts and more sustained investor confidence beyond mega-deals like Binance’s.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/crypto-vc-investment-surges-in-q1-2025-but-one-deal-skews-the-data/