The rising popularity of crypto ETFs is capturing investor interest, diverting attention away from early-stage crypto startups. This trend is reshaping how capital flows within the crypto ecosystem.
In Q4 2024, crypto startups attracted $3.5 billion in venture capital across 416 deals, marking a 46% quarter-over-quarter increase. Early-stage investments made up 60%, with stablecoin firms like Tether leading the funding rounds. The U.S. continues to dominate capital allocation, while regulatory changes and growing interest in integrating crypto with traditional finance forecast a potential surge in 2025.