Crypto VC Deals Hit 2025 Low in May With 62 Rounds

Cryptocurrency venture capital (VC) deals reached their lowest point of 2025 in May, with only 62 rounds completed. This marked the fewest number of deals since January 2021, despite the total amount raised exceeding $909 million. This figure made May the second-best month of the year by value, trailing only March, which saw $2.89 billion raised across 78 rounds.

Analysts attribute the slowdown to a combination of market-specific and macroeconomic factors. Market prices and sentiment peaked at the end of January and rebounded only in April, before deteriorating due to tariff rhetoric. This, coupled with a challenging macro backdrop, higher-for-longer policy rates, jittery bond markets, and fresh tariff headlines, has made it harder for risk assets to secure new M&A deals.

Most transactions observed are consolidation plays, a pattern typical in cooling markets or after extended periods of range-bound pricing. The disappointing year-to-date performance of most crypto assets, with Bitcoin being a notable exception, has also contributed to the lack of interest.

Despite the drop in venture deals, merger and acquisition (M&A) activity remained robust. Coinbase Global acquired Deribit for $2.9 billion in a traditional M&A deal, marking a new all-time high for crypto M&As. This acquisition highlights the continued strength in M&A activity within the crypto space, even as VC deals slow down.

The slowdown in VC deals may also be influenced by seasonal patterns, with May and June typically seeing lower activity. Activity is expected to pick up again as the year progresses, particularly in early Q4, when historically the best deals are done and investors return from summer mode.

Overall, while the number of VC deals in the crypto space hit a 2025 low in May, the total amount raised and the continued strength in M&A activity suggest that the industry remains resilient. The combination of market-specific and macroeconomic factors, along with seasonal patterns, will likely continue to influence VC activity in the coming months.