Crypto is back Venture capital investment in crypto startups is booming, with more than $9 billion invested globally so far this year. Our experts agree that 2025 will be a groundbreaking year for VC funding, both in the crypto and broader tech spaces. That’s because this latest wave of investment focuses on improving user experience (UX) and loading artificial intelligence (AI). It would take advantage of new and innovative trading platforms. Venture capitalists are particularly interested in applications that address crypto's long-standing UX issues, aiming to make blockchain technology more accessible and user-friendly.

Investment Trends and Focus Areas

Venture capital firms are actively seeking out projects that can overcome the challenges hindering the widespread adoption of blockchain-based applications. Another major focus area is advancing user experience. Their awful UX has for years been touted as the thing keeping tons of would-be users far away as that barrier to entry.

For instance, Felix Machart, a managing partner at Greenfield Capital, highlighted the explosion in trading activity on decentralized derivatives exchanges. This boom is catching the interest of all types of investors. These ecosystems present incredible opportunities for innovation and potential economic growth as we continue to build out the crypto market.

GnosisVC, whose $40 million fund is focused on backing crypto projects, is just one of the many signs that interest in the sector is accelerating. As a firm, we are intentionally seeking projects that have the possibility to disrupt the current status quo.

The Rise of AI and Gamified Trading

Stefan George, co-founder and chief technology officer of Gnosis, AI agents are the new frontier. These agents are increasingly running wild outside of traditional financial regulatory oversight within the crypto ecosystem.

"We totally see that there’s an emergence of AI agents acting autonomously" - Stefan George

As George explained, these agents can be used to automate administrative tasks, optimize trading strategies and improve efficiency. George believes crypto will surpass traditional methods, stating:

"They're not going to use PayPal to pay each other. They're going to use crypto to pay each other." - Stefan George

Venture capitalists are further interested in trading applications that create new competitive forces and game-like experiences. Jakub Rusiecki highlighted the appeal of transforming the often-volatile experience of trading cryptocurrencies into a more engaging and game-like activity.

"People are competing on who has a better profit-and-loss. We’re gonna lean into that." - Jakub Rusiecki

"Every successful social consumer app had a viral loop that got people stuck on the app" - Jakub Rusiecki

New Platforms and Market Dynamics

Hyperliquid has become wildly popular among DeFi traders since launching its token eight months ago. This platform highlights the awesome opportunities awaiting new players looking to enter the market. And all of this with trading speeds that could go toe to toe with centralized exchanges making them a users whole trading edge. This reflects the overall trend of the crypto market away from slow and inefficient processes towards something faster with higher efficiency.

"More transparency should actually lead to more efficient pricing of assets" - Felix Machart

The current venture capital boom into crypto is much different from the one four years ago. Investors are more discerning, focusing on projects with practical applications, strong user experiences, and the potential to drive mainstream adoption.