Venture capital investment in the cryptocurrency sector is expected to reach $34 billion in 2025, doubling from $17 billion in 2024, according to a Cointelegraph Research report. The report highlights a significant shift in investment focus towards projects with sustainable revenue models and clear market fit, leading to a decline in seed funding by 18% and a 90% increase in Series B funding. Real-world asset tokenization has emerged as a key narrative, raising over $2.5 billion and pushing the total market capitalization of tokenized assets to over $38 billion. Despite this growth, the sector remains small compared to the global traditional market. Meanwhile, investment in Ethereum Layer 2 and modular infrastructure has plummeted by 72% to $162 million in 2025, as the ecosystem reaches saturation and investment demand is met.