Crypto VC Deal Volume Reach Multi-Year Low for May 2025, But Funding Value Still High Amid Market Consolidation
Crypto venture capital (VC) yawa sharply for May 2025, e reach lowest deal count since January 2021 wit just 62 funding rounds finish, RootData and Cointelegraph talk. Even tho deal dem reduce, total money wey dem raise pass $909 million, make May become second-strongest month for funding value for 2025. Data show say investors dey do fewer, but bigger and late-stage investment rounds, meaning say dem dey pick better project wey get strong foundation, clear use and solid business model. Big economic wahala like high interest rate, shakara global market, and new tariffs join make investors dey select well, do plenty due diligence and reduce wetin no too serious. Mergers and acquisitions (M&A) still dey strong, example na the major deal wey Coinbase do to buy Deribit for $2.9 billion. Though e hard for early startups and market dey try arrange itself, good crypto projects still fit attract serious money. For crypto traders, this show say market dey mature, startup valuations fit change and better investment opportunity dey for high-quality projects. We dey expect VC activity go pick up again for Q4 as market clarity and liquidity improve.
Neutral
Di sharp drop wey happen for crypto VC deal volume, even though overall funding plenty and M&A activities strong, e show say investors dey selective and di market dey mature. Even though dem dey fund fewer early-stage projects, those wey get strong foundations still dey attract big capital. This trend na because investors dey cautious due to macroeconomic pressures and market volatility, wey fit dey reduce speculative trading for short term. But di big investments wey still dey and di expectations for Q4 rebound show say underlying interest still dey stable; e no dey clearly bullish or bearish for di wider crypto market short term. Traders suppose dey watch market consolidation and new high-quality opportunities as di environment dey change.