Codebase Director: In 2025, VC will invest $25 billion in the encryption field.

Odaily News Ava Labs incubator Codebase director Michael Martin stated in an interview that venture capital firms are expected to invest up to $25 billion in crypto startups by 2025. He pointed out that a series of favourable events are forming a "perfect storm" to attract capital into the crypto industry, including Circle's successful listing, market recovery, Stripe's acquisition of Privy, Wall Street's increased investment in blockchain, and clearer regulatory rules for digital assets. Martin believes these factors will give investors more confidence in early-stage real-world blockchain companies. This week, 12 crypto projects have completed financing, raising a total of $121 million, with total financing since 2025 reaching $13.2 billion, far exceeding last year's full-year level of 40%, and is expected to surpass PitchBook's previous prediction of $18 billion. Martin's expectations align with those of Galaxy Ventures' Mike Giampapa. Both believe that former U.S. President Trump, through the "Genius Act" and pushing Congress to review more crypto bills, has provided a clear compliance pathway for financial institutions and tech companies to further engage in the digital asset space. However, Martin also warned that if publicly listed crypto companies like Circle and Coinbase underperform expectations, or if the macroeconomic environment worsens due to uncertainties such as tariffs imposed by the Trump administration, it could affect investor confidence and slow the pace of capital deployment. (DL News)