In May 2025, the cryptocurrency market saw a significant decline in venture capital activity, completing only 62 financing rounds, marking the lowest monthly total since January 2021. Despite the reduced number of deals, the total financing amount reached $909 million, making it the second-largest month for funding this year, following March's $2.89 billion across 78 rounds. Analysts attribute the slowdown to ongoing market volatility, high interest rates from the Federal Reserve, and seasonal investment patterns.