Crypto VC Funding Slumps; Stablecoins, RWA Garner Capital

Galaxy Research says crypto venture capital activity fell sharply in Q2 2025 as investors redirected capital toward holding digital assets and treasury strategies. Funding that remains is concentrated in stablecoin infrastructure and real-world-asset (RWA) tokenization projects, while many firms boost Bitcoin and stablecoin treasuries.

Key facts
- Galaxy Research reported a steep decline in crypto venture capital activity in Q2 2025.
- Investors are shifting capital from early-stage VC to direct digital-asset accumulation and corporate treasury strategies.
- Funds and companies are increasing allocations to Bitcoin and stablecoin treasuries.
- Remaining VC capital is disproportionately flowing to stablecoin infrastructure projects.
- Interest and investment attention are growing for RWA infrastructure (tokenized real-world assets).

Background information
After multiple market shocks and regulatory scrutiny since 2022, traditional venture funding in crypto has contracted, prompting firms to prioritize liquidity and balance-sheet strength. That has redirected limited investment into areas seen as lower-risk or offering yield and utility.

Impact: The shift reduces early-stage funding availability, likely slowing some protocol and infrastructure development, while strengthening demand and capital for stablecoin and RWA infrastructure and for firms holding crypto treasuries.