Additionally, the stablecoin and payments sector has seen an incredible revival in venture capital momentum. Today, it gleams as one of the only crypto sectors to have exceeded its performance metrics from 2021. This growth is driven by growing institutional demand and positive regulatory advancements.

In fact, the deal count in the third and fourth quarters of 2024 reached new highs—43 deals in Q3 and 42 in Q4. These numbers represent new records for quarterly deal activity in this sector. These are the companies that have built the stablecoin issuance engines and the payment processing infrastructure tailored to stablecoins, among others. To put that in perspective, there were only 87 deals for all of 2021 in total over all four quarters combined.

This jump in stablecoin activity is even more remarkable in light of the overall market direction. Similarly, the GENIUS Act in the United States has established more defined regulatory structures. Consequently, the agreement has done a good job of bringing in institutional investors. These frameworks offer the simplicity and transparency that institutional investors love. Through this effect, they increase overall confidence and inject more investment into the stablecoin ecosystem.

That new clarity has in turn triggered a tidal wave of venture capital investment into the wider stablecoin ecosystem in recent months. In the first quarter of 2025, 7.5% of all venture capital deals were directed towards payment providers or stablecoin issuers. Ethereum-based stablecoin adoption remains at record highs with more than 750,000 unique users per week.

This institutional validation has done even more to supercharge the expansion of the stablecoin ecosystem. Venture capital activity has been through the roof over the past few quarters. This boom is a clear indication of increasing confidence towards stablecoins as a trustworthy and efficient method of payment. Foresight Ventures, which in November 2023 assumed majority investor of The Block. Now, they’re joined by a variety of other institutional players who are thrilled by the potential of this nascent sector.