Blockchain Venture Capital Funding Sees Remarkable Recovery in 2024
Venture capital funding for blockchain startups experienced a significant rebound in 2024, reaching $13.6 billion, up from $10.1 billion in 2023, as reported by a recent DeFi Report. This upswing highlights the sector’s resilience, although it remains below the 2021 peak of $32.4 billion. Looking ahead, analysts from Galaxy Research and PitchBook forecast a notable increase in 2025, with funding expected to exceed $18 billion. This anticipated growth is attributed to factors such as declining interest rates, enhanced regulatory clarity, and a resurgence of interest from generalist investors.
Major Funding Rounds Underscore Sector Resilience
Several key funding rounds in 2024 have underscored the sector’s robustness. Monad Labs successfully secured $225 million to further develop its layer-1 smart contract network. Meanwhile, Berachain raised $100 million to advance its modular blockchain platform. Securitize, a tokenization platform, received $47 million from BlackRock, and Bitcoin staking protocol Babylon raised $70 million. Notably, Usual, a French stablecoin startup, raised $10 million from Binance Labs and Kraken Ventures, with its stablecoin, Usual USD, backed by real-world assets, amassing over $1.7 billion in total value locked (TVL) by year-end.
Avalon Labs closed a $10 million Series A round led by Framework Ventures to scale its Bitcoin-backed DeFi ecosystem, currently supporting over 20,000 Bitcoin and serving more than 200,000 users. Similarly, Accountable, a crypto data platform, raised $2.3 million to enhance its privacy-focused data-sharing technology, utilizing advanced cryptographic tools to cater to both institutional and retail clients.
Thena, a decentralized exchange operating on the BNB Chain, also received funding from Binance Labs to expand its cross-chain operations. The platform employs the “ve(3,3)” tokenomics model and reported a TVL of $63 million at the end of the year.
Shifting Focus Towards Decentralized Applications
Analysts anticipate a shift in investment focus in 2025 from infrastructure projects to decentralized applications (DApps) and real-world use cases, including mobility and energy data. These applications aim to attract non-crypto users by offering enhanced usability and improved risk management.
The Importance of a Stable Regulatory Environment
The regulatory landscape remains a critical factor in the industry’s trajectory. Robert Le of PitchBook foresees fewer enforcement actions under the incoming U.S. administration, with potential legislative progress on stablecoins and crypto-specific regulations. Even without new regulations, a stable regulatory environment could significantly boost investor confidence.
The combination of institutional involvement, the re-emergence of generalist investors, and a shift towards application-focused investments is expected to drive the crypto sector forward. As noted by Alex Thorn and Gabe Parker of Galaxy Research, “crypto VC fundraising has historically lagged broader crypto market trends,” but the upcoming year is poised for a notable “catch-up.” With funding projected to reach $18 billion, 2025 could be a pivotal year for the industry.
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