Crypto VC Funding Surges to $4.65B in Q3, Second-Highest Since FTX

Nov 25, 2025

Capital flowed mainly into stablecoins, AI, and blockchain infrastructure, with seven deals capturing half of all investment.

Crypto venture funding roared back in the third quarter, hitting $4.65 billion, the second-highest level since the collapse of FTX sent shockwaves through the industry in late 2022.

AI and Stablecoins Dominate as Crypto VC Flows Shift Toward Infrastructure

Key areas like stablecoins, AI-driven crypto tools, blockchain infrastructure, and trading technology continued to attract capital throughout the quarter, while very early-stage activity held steady.

The renewed momentum comes after nearly two years of muted investment across the sector. Venture firms pulled back sharply following the exposure of FTX’s multibillion-dollar fraud, which wiped out confidence and froze deal flow across nearly every corner of the industry.

Despite the headline jump, capital deployment was heavily concentrated. Out of 414 venture deals, just seven accounted for half of all money invested in Q3.

The quarter’s fundraising was heavily concentrated, with a handful of major players absorbing most of the capital.

At the same time, institutional investors appear to be turning toward spot Bitcoin ETPs and digital-asset treasury strategies, gaining crypto exposure through liquid, regulated products instead of early-stage bets.

Still, Thorn believes regulatory shifts, including clearer US frameworks, could renew allocator confidence.

US Maintains Venture Dominance

The United States remained the epicenter of crypto VC activity in Q3, capturing 47% of invested capital and 40% of completed deals. The UK followed with 28% of capital, while Singapore accounted for 3.8%.

Despite previous regulatory uncertainty, Thorn expects US dominance to strengthen under the crypto-friendly Trump administration.

Sources >> Crypto VC Funding Surges to $4.65B in Q3, Second-Highest Since FTX