In Q1 2025, the number of crypto venture capital deals fell by nearly 40% from the previous year, with 405 deals compared to 670 in Q1 2024, but the total investment surged to $6 billion, more than doubling from $2.6 billion a year prior. This increase highlights a strong interest in crypto's core utilities despite macroeconomic challenges. The largest funding segment attracted nearly $2.55 billion across 16 deals focused on exchanges and financial services. Crypto infrastructure and development garnered approximately $955 million from 30 deals, while Web3-focused companies attracted 23 deals amounting to $231.2 million. PitchBook's analyst noted that a potential IPO for Circle, valued between $4 billion to $5 billion, could indicate sustainable business models in the crypto space. The report also pointed to a 12% increase in the market value of stablecoins, emphasizing dollar-denominated settlement as a key application of crypto, particularly in remittance and treasury management. Overall, the findings suggest a shifting investment landscape with potential growth in venture capital activities, particularly in payment systems and custody solutions.

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