Are crypto venture capital trends cooling down, or simply maturing

‍

In 2025, venture capital is shifting (again). Artificial intelligence continues to dominate headlines, but blockchain is evolving behind the scenes. You’re probably asking: Where’s the smart money going now?

The short answer? Both. But not in the same way.

This article breaks down where VC funding is flowing in 2025, what that means for your business, and how the latest crypto venture capital trends signal long-term value in blockchain, beyond all of the buzz.

‍

AI funding is still accelerating and maturing fast

‍

AI is having its moment, and the numbers back it up. In Q1 2025 alone, AI was the frontmost sector for venture funding with $59.6 billion globally, according to Crunchbase. This means that more than half (53%) of the global funding went to the AI sector alone.

What’s driving this?

• Enterprises are adopting agentic AI systems that can autonomously manage complex workflows.
• The market favors infrastructure over novelty. Investment is flowing into vertical LLMs, regulatory-compliant AI models, and edge processing solutions.
• Flagship deals like OpenAI’s $40 billion raise and Anthropic’s $4.5 billion round show that investors believe in AI’s long-term scalability.

But while AI draws capital, VCs aren’t ignoring blockchain — they’re just choosing it more strategically.

‍

Blockchain funding is shifting toward real-world use cases

‍

Blockchain funding has not disappeared. It has evolved.

In Q1 2025, blockchain and crypto startups raised $4.8 billion, the strongest quarter since late 2022. The numbers for Q1 2025 alone already equal 60% of the total VC capital in 2024. During this quarter, $2 billion was invested into Binance by MGX, – a frontrunner in AI and technology investments in the UAE. This deal set the record for the single largest deal in VC history. As per crypto venture capital trends, VCs are focusing their attention on foundational blockchain technologies rather than speculative assets.

Key areas of investment include:

• Blockchain cybersecurity for supply chain security and industrial IoT, with companies like Asvin leading the way.
• Tokenization of real-world assets (RWAs), including real estate and commodities. Experts like the Boston Consulting Group (BCG) predict an expected CAGR of 53% from 2025 to 2033, going up from $600 billion to $18.9 trillion. 
• Decentralized finance (DeFi) protocols raised $763 million last quarter.

‍

Why enterprises still need blockchain in 2025

‍

If you are leading innovation in your industry, blockchain remains essential to several critical areas:

• Transparent supply chains for ESG reporting and regulatory compliance.
• Secure digital identities across users, vendors, and devices.
• Automated smart contracts for financial settlements and agreements.
• Tokenization to create liquidity for physical and digital assets.

‍

Blockchain is not an alternative to AI. It is a parallel infrastructure supporting trust, ownership, and security at scale. This is why, beyond the core use cases of blockchain, several major trends are driving enterprise adoption in 2025. These include:

• Integration of AI in blockchain: Businesses are using blockchain for AI model auditability, data provenance, and tokenized royalties for AI-generated content.  
• Payments: Stablecoins are emerging as the leading payment rail, offering faster and cheaper settlement for cross-border transactions. 
• TradFi to DeFi: TradFi firms are looking to switch to blockchain technology to improve overall processes while optimizing costs. 

‍

Smart VCs are investing in both AI and blockchain

‍

At CV VC, we see the smartest capital flows diversifying across AI and blockchain, not picking one over the other.

• AI is optimizing processes, decision-making, and operations.
• Blockchain is securing assets, transactions, and identities.

The convergence is already happening. New use cases are emerging, such as:

• AI models with on-chain auditability to verify data provenance.
• Smart contracts triggered by AI-driven decisions.
• Tokenized royalties for AI-generated content.

‍

What does this mean for investors in 2025

‍

You should not frame your next investment strategy around choosing between AI and blockchain. Instead, focus on how each technology fits into your company's long-term strategic goals.

Venture capitalists are not chasing trends. They are aligning with scalable, regulation-ready, and mission-driven technologies that solve real-world problems. That is the model CV VC backs and believes in. Explore the CV VC startups shaping the future of blockchain and Web3 on our website.