Crypto venture capital funding experienced a significant decline in Q2 2025, dropping to $1.97 billion across 378 deals, marking a 59% decrease in funding and a 15% reduction in deal count from Q1. This downturn reflects a growing investor preference for direct digital asset accumulation and treasury strategies, particularly focusing on Bitcoin and stablecoins, rather than early-stage startup investments. Despite the overall slowdown, institutional investors have raised approximately $15 billion year-to-date by August 21 to bolster crypto treasuries. Selective capital continues to flow into projects related to real-world asset tokenization, stablecoin infrastructure, and privacy-focused onchain finance, indicating targeted interest in these areas.