Coinspeaker
Crypto VC Funding Rose 14% Monthly but Fell 35.1% Yearly in February
Crypto venture capital funding saw a strong rebound in February 2025, recording a 14.4% increase in total investment volume compared to the previous month. According to a recent report by Wu Blockchain, 98 publicly disclosed crypto VC deals took place, up from 86 in January.Â
VC Monthly Report: February Sees 14% Growth in Funding Amount and Deal Count, Stablecoins and Payments Dominate Investments.Figure, Ethena, Bitwise, Raise, etc. are the projects with the largest amount of public financing this month. Read more https://t.co/ceOj9QD1XN pic.twitter.com/8fKzg1E9RI
— Wu Blockchain (@WuBlockchain) March 3, 2025
However, when compared to the same time last year, funding was still 35.1% lower. In February 2024, 151 projects had received funding, which was much higher than in 2025.
The total capital influx reached $951 million, marking a notable jump from $831 million in January and a 24.3% increase from $765 million a year prior. Investors primarily poured money into stablecoin-related ventures and payment solutions, reinforcing the sector’s role in crypto’s evolving financial landscape.
Stablecoins and Payments Lead the Charge
Raise, a gift card startup, pulled in $63 million in a strategic funding round. The company wants to add crypto payments to its platform, using stablecoins to make transactions smoother. Plasma, a blockchain company focused on stablecoins, secured $24 million in its first funding round. Backed by Framework Ventures, Bitfinex, and Tether CEO Paolo Ardoino, Plasma is working on a network designed for zero-fee Tether transactions. Even without transaction fees, the company plans to make money by supporting protocols like Curve, Ethena, and Aave.
Source: Wu Blockchain
Ethena, which had already raised $100 million through private ENA sales in December, continues to grab attention. Investors include Franklin Templeton and Fidelity’s venture arm, F-Prime Capital. Ethena aims to connect traditional finance with crypto by offering tokenized financial instruments.
Figure & Sixth Street led the month’s largest investment with $200 million to boost private credit liquidity. Bitwise secured $70 million to expand investments and strengthen finances. Blockaid, an Israeli blockchain security firm, raised $50 million in a Series B round, solidifying its position in the cybersecurity space.
Bitcoin and Modular Blockchain Projects Gain Traction
Bitcoin-focused projects attracted strong investment, with Taproot Wizards securing $30 million in its post-seed round. Standard Crypto led the funding, with support from Cyberfund and Collider Ventures. Known for inscribing Bitcoin’s first-ever 4MB block, Taproot Wizards aims to expand Bitcoin’s smart contract capabilities through the OP_CAT ecosystem.
Modular blockchain development also saw funding, as Cygnus raised $20 million in a pre-seed round. Investors like Manifold and OKX Ventures backed the project. Cygnus focuses on scalable blockchain solutions, addressing the need for efficient and flexible networks. Meanwhile, HashKey, a leading Asian crypto firm, received $30 million from Gaorong Ventures, surpassing a $1.5 billion valuation.
Artificial intelligence and decentralized computing gained traction, with Prime Intellect securing $15 million in funding. Founders Fund led the round, with support from industry figures like Andrej Karpathy and Clem Delangue. January’s investment breakdown showed DeFi leading at 31.6%, followed by AI at 18.4%, with NFT/GameFi, CeFi, and RWA/DePIN also drawing significant funding.
Source: Wu Blockchain
Crypto VC Funding Rose 14% Monthly but Fell 35.1% Yearly in February
