Why Galaxy Ventures is bullish even as crypto VC investment tanks 24%

Mike Giampapa likes crypto’s chances.

Galaxy Ventures’ wide spouse told DL News that helium expects investors volition summation the magnitude they determination into manufacture projects.

That’s immoderate prediction, fixed however the full crypto marketplace shed 12% — oregon astir $500 cardinal — of its full worth successful February.

Meanwhile, and currency injections into manufacture projects dropped 24% from January to $973 million, according to DefiLlama data.

“We don’t judge the terms enactment implicit the past period volition person a detrimental interaction connected the VC scenery implicit the people of 2025,” Giampapa told DL News.

He added that helium expects the exit situation to amended with much crypto companies going nationalist oregon being acquired.

Giampapa is not the lone 1 to beryllium optimistic.

In December, PitchBook analysts told DL News they predicted VCs to inject immoderate $18 cardinal into the assemblage this year, up from the $9.9 cardinal yearly mean of 2023 and 2024.

The Trump effect

Why the bullishness? To Giampapa, the manufacture inactive has a batch going for it.

President Donald Trump has promised to marque the US the crypto superior of the planet.

Since his predetermination win, helium has made a drawstring of appointments and enforcement orders designed to extremity what helium and the manufacture called a crypto crackdown. This week, the White House hosts its archetypal ever crypto summit.

Trump and radical associated with him person adjacent launched a fig of crypto projects of their own.

Meanwhile, the Securities and Exchange Commission has dropped its cases against Coinbase, Uniswap, Robinhood, and OpenSea. It besides tore up its arguable SAB 121 rule, which present opens the playing tract for US firms looking to clasp crypto connected their books.

At the aforesaid time, accepted fiscal institutions are progressively tapping into the industry. Just past week, Bank of America said it mightiness motorboat its ain stablecoin.

“It’s a caller epoch for crypto, and VCs are excited by the adjacent procreation of startups being founded successful the space,” Justin Barlow, task spouse astatine Faction VC and an angel investor, told DL News in February.

Giampapa said galore VC firms are successful the process of raising superior oregon kicking disconnected fundraising processes. “So superior is forming astir these themes.”

No ‘drastic spike’

While erstwhile bull runs successful 2018 and 2021 saw concern surge, Giampapa doubted that past volition repetition itself this clip around.

“I don’t foresee a drastic spike successful VC backing successful 2025 with the likes of galore crossover funds and generalist VC funds entering the market,” helium said.

In 2025, Giampapa said Galaxy Ventures volition absorption connected “novel crypto networks and financialised applications gathering connected apical of these networks to alteration better, faster, cheaper fiscal services.”

“We spot stablecoins and accepted concern connected a collision people and privation to put successful businesses that alteration much businesslike wealth question astir the world,” helium said.

The remark echoes PitchBook’s February predictions that stablecoins and artificial quality are 2 cardinal areas successful which investors funny successful crypto ventures volition determination their wealth into this year.

Eric Johansson is DL News’ News Editor. Got a tip? Email astatine [email protected].