Crypto Fundraising Hits $16.5B in 2025 as Token Raises Go Extinct—Here’s Why

Crypto's fundraising engine just left 'traditional' VC in the dust. Again.

While token raises flatline—buried under regulatory scrutiny and investor fatigue—the sector just posted its fattest year ever. $16.5 billion. Let that sink in.

Where's the money going? Not your grandma's ICO.

Infrastructure plays are vacuuming up capital like DeFi did in 2021. Layer 2s, zero-knowledge proofs, and institutional-grade custody solutions dominate deal flow. Even Wall Street's pet 'blockchain initiatives' can't keep up with the pace.

And the kicker? Most of this cash hit during a bear market. Because nothing makes sense in crypto—except printing money while everyone else panics.

(Bonus jab: Somewhere in Silicon Valley, a VC is still explaining how their 'web3 thesis' missed this entirely.)

CEX.IO noted that this rising number showcases renewed interest following growing adoption trends and a post-election regulatory shift. It also suggests a rebound in investor confidence despite global venture markets remaining cautious.

Tokenless projects gain traction

One of the clearest trends in 2025 is the shift toward quality over quantity. Investors are putting larger sums into fewer projects, with the average deal size reaching nearly $20 million.

This signals growing confidence in experienced teams with sound business models, rather than speculative bets on early-stage ventures.

Meanwhile, another striking development this year is the rise of tokenless fundraising. So far this year, 82% of funded projects raised capital without launching a token.

According to CEX.IO, this shift suggests investors are prioritizing real products, sustainable revenue, and long-term fundamentals.

In contrast, 85% of token-funded projects in 2025 are underperforming on key metrics, a trend that has reinforced caution among investors.

CEX.IO concluded that the MOVE away from token launches and toward operational businesses illustrates a maturing market. According to the firm, investors are now backing ventures that aim to build sustainable products before exploring token models.

Where the money went

finance-related projects, including CeFi and DeFi, received the lion’s share of funding. The projects raised $4.9 billion across 171 deals, or 51.4% of total investments during the period.

Other sectors like infrastructure-focused ventures, including hardware, security, oracles, and bridges, secured 17.9% of the funding.

Meanwhile, consumer-facing applications, artificial intelligence, and DePin projects followed, attracting 14.7%, 5.0%, and 3.1% of funding, respectively.

Another interesting point was that M&A activity has quietly surged, crossing the $6 billion mark, more than triple last year’s figure. CEX.IO pointed out that these deals now account for 36.7% of all crypto transactions.

According to the report, this growth emphasizes the industry’s shift toward consolidation, with companies acquiring existing platforms and technologies to accelerate user growth and strategic positioning.