Cointelegraph Research’s report on crypto VCs in 2025 highlights VC investments in Web3 startups doubling, reaching over $8 billion in every quarter. The RWA sector raised more than $2.5 billion, indicating a shift towards sustainable revenue models and later financing stages. The narrative is shifting towards real-world assets (RWA), with tokenized assets surpassing $38 billion, showing substantial room for growth.

However, Ethereum layer 2 projects saw a decline in funding in 2025, dropping by 72% from the previous year. The saturation of the market due to the rapid proliferation of layer-2 blockchains led to decreased VC interest in this technology. The report provides insights into which crypto sectors are losing VC interest.

Overall, the state of crypto venture capital in 2026 saw total funding exceeding $34 billion, doubling from 2024. Despite being considered a risk-off year, investors favored bonds and safe-haven assets in 2025. The report emphasizes the importance of sustainable revenue models and a shift towards ecosystem development, indicating deeper investor involvement in projects.

Read more at Cointelegraph: Crypto VC Funding Doubled in 2025 as RWA Tokenization Took the Lead