Crypto Market is now in its fifth month of 2025, but retail investors haven’t improved much to their portfolio. Meanwhile, what direction are venture capital (VC) companies taking in the market landscape in 2025?
The answer to this question can serve as valuable insights for individual investors.
Which sectors are attracting VCs’ attention for the rest of 2025?
Rollup Co. host Andy shared important highlights from his conversations with top venture capitalists. These insights reveal sectors that are attracting strong interest.
According to Andy, the first area of focus is the stubcoin.
“Stablecoin issuers are very investable and there will probably be ten times as much,” Andy revealed.
CoinMarketCap lists over 200 Stablecoins, while Coingecko tracks over 300. Data from the Token Terminal shows that Stablecoin’s market capitalization exceeds the $225 billion issued by entities with over 50 market capitalizations. However, Tether and Circle still dominate most of its market capitalization.
Stablecoin capitalization by the publisher. Source: Token Device
If this prediction holds, the number of Stablecoin publishers could increase by several hundred. This opens new investment opportunities for individuals through airdrops, Stablecoin yields, and Defi protocols.
VC also finds AI to be an interesting sector. However, we recognize the gap between how AI applications are developed between Web2 and Web3.
“The AI sector is interesting, but for now it’s a better builder for Web2,” added Andy.
A recent report from Beincrypto shows that the number of AI agents has increased by an average of 33% per month. However, Web3-based AI solutions account for just 3% of the total AI agent ecosystem. These numbers are consistent with VCS observations. Web3 AI can require more time to prove yourself in practical and efficient use cases.
Anthony, founder of BlockChain121, also commented on the trends in which decentralized AI projects attract top talent from the Web2 AI space.
“For the first time ever, a legitimate DEAI project is attracting legitimate world-class engineers and researchers of Web2 AI,” Anthony said.
Additionally, Andy revealed that the VC has a particular emphasis on actual assets (RWAS).
“rwas, rwas, rwas are all important,” Andy emphasized.
Total RWA value. Source: rwa.xyz
Beincrypto reported that RWAS’s market capitalization exceeded $20 billion in April. At the time of writing, the RWA.xyz platform presents its current market capitalization of $18.9 billion.
The involvement of major financial institutions such as BlackRock and Fidelity has boosted investors’ confidence in the sector’s long-term potential. Tren.Finance even predicts that RWA’s market capitalization could reach more than $10 trillion by 2030.
Finally, in addition to Stablecoins and RWAS, Andy said that Bitcoin liquidity market is also of interest to VCS.
VC will suffer losses in 2025 amid declining market
VCS was not affected by losses in 2025 due to a significant drop in market capitalization. Unpredictable macroeconomic policies like tariffs are putting pressure on them and causing severe shaking.
“Crypto VCs have narrowed down their margins recently. Many people don’t return positive LPS returns. They struggle to raise new funds, especially in the post-custom world. Many of the tokens they invested in over the past two years have either not been launched or beat badly.
Crypto VC funding reached $4.8 billion in the first quarter of 2025, according to Cryptorank. This is the highest since the third quarter of 2022. This was driven primarily by major transactions such as MGX and Kraken. In April alone, VC funding reached $2.3 billion in 87 investment rounds.
Overall, the VC will remain cautiously optimistic since early 2025 despite pressure from investor withdrawal and macroeconomic headwinds. This optimism is reflected in the increased volume of funding and trading flow compared to 2023-2024.
