JPMorgan: The scale of crypto VC investment in 2025 is unlikely to reach the peak levels of 2021-2022

ChainCatcher news, according to The Block, JPMorgan analysts expect that while cryptocurrency venture capital will see some growth in 2025, it will be difficult to reach the peak levels of 2021-2022.

The report highlights key challenges including: increased competition from large financial institutions like BlackRock in areas such as stablecoins and tokenization; the rise of community-driven financing platforms like Echo leading to a reduction in large-scale token sales by project teams to VCs; a high interest rate environment diminishing the attractiveness of venture capital; and cryptocurrency ETFs diverting investor attention.

Analysts believe that in the future, venture capital will focus more on projects with actual user adoption and long-term growth potential, rather than traditional short-term metrics.