PANews reported on January 24 that according to The Block, JPMorgan analysts predict that cryptocurrency venture capital (VC) funding will grow in 2025, but it will be difficult to reach the peaks of 2021 and 2022. Although the clear regulatory environment in the United States and Europe is expected to attract more investment, other factors are bringing new challenges to VC.

• On the one hand, the expansion of large financial institutions such as BlackRock and Franklin Templeton in the field of cryptocurrency, especially in the fields of stablecoins, tokenization and decentralized finance, has squeezed the market share of VCs. For example, BlackRock's expansion of its tokenized money market fund to multiple blockchains may affect the prospects of new projects in the stablecoin market.
• On the other hand, the rise of community-driven fundraising platforms such as Echo and concerns about control and regulatory risks among cryptocurrency projects have led them to prefer avoiding large-scale token sales to VCs, making it more difficult for traditional VCs to access promising startups.
• In addition, high interest rates reduce the attractiveness of venture capital funds to other investment options, limiting capital inflows. At the same time, the popularity of cryptocurrency ETFs has also diverted investors' attention and reduced the funds available to VCs.

Going forward, cryptocurrency VCs are expected to prioritize projects with real user adoption and focus on long-term growth rather than traditional short-term metrics such as TVL and token economics. This trend highlights the growing focus on the fundamentals of blockchain technology, especially those that enhance scalability, security, and efficiency.