The post Here’s why record Crypto VC funding figures are fueling an even bigger question appeared on BitcoinEthereumNews.com. The crypto industry is smashing financial records, but the good news comes alongside a critical caveat. VC investments break record November analytics from CryptoRank revealed that Venture Capital (VC) investment in the sector hit an unprecedented high of $14.48 billion. The $14.48 billion surge is over twice the figures seen two months ago and 70% above July’s peak – A sign of growing institutional confidence and crypto’s rising global relevance. However, while this capital could accelerate development across DeFi, NFTs, and more, it also poses a serious threat to crypto’s core principle – Decentralization. Ray Youssef weighs in As Ray Youssef commented on this trend, the worry is that unchecked VC growth could fundamentally alter the market’s landscape. Instead of a natural, independently developing ecosystem, a shift is occurring where a few large funds, the new institutional players, begin to dominate and shape the entire market. The concern is that this will result in a centralized system where major investors dictate which projects thrive and which are left to fail. This could lead to a significant redistribution of capital that favors their interests over the organic, grassroots development that defined crypto’s early years. Remarking on the same, Ray Youssef, CEO of NoOnes, said, “This shift, on the one hand, marks the completion of global crypto adoption, while also raising doubts not only about the role of retail investors in the market but also about the broader benefit of cryptocurrency for ordinary people.” Crypto funding figures are misleading? On the contrary, according to Colin Wu, November’s record in crypto funding is misleading. A single $10.3 billion Naver–Dunamu acquisition inflated the numbers, marking a major step towards corporate control of South Korea’s top exchange. Meanwhile, overall VC deals plunged by 28% month-over-month and 41% year-over-year. This implied that the surge isn’t broad ecosystem… The post Here’s why record Crypto VC funding figures are fueling an even bigger question appeared on BitcoinEthereumNews.com. The crypto industry is smashing financial records, but the good news comes alongside a critical caveat. VC investments break record November analytics from CryptoRank revealed that Venture Capital (VC) investment in the sector hit an unprecedented high of $14.48 billion. The $14.48 billion surge is over twice the figures seen two months ago and 70% above July’s peak – A sign of growing institutional confidence and crypto’s rising global relevance. However, while this capital could accelerate development across DeFi, NFTs, and more, it also poses a serious threat to crypto’s core principle – Decentralization. Ray Youssef weighs in As Ray Youssef commented on this trend, the worry is that unchecked VC growth could fundamentally alter the market’s landscape. Instead of a natural, independently developing ecosystem, a shift is occurring where a few large funds, the new institutional players, begin to dominate and shape the entire market. The concern is that this will result in a centralized system where major investors dictate which projects thrive and which are left to fail. This could lead to a significant redistribution of capital that favors their interests over the organic, grassroots development that defined crypto’s early years. Remarking on the same, Ray Youssef, CEO of NoOnes, said, “This shift, on the one hand, marks the completion of global crypto adoption, while also raising doubts not only about the role of retail investors in the market but also about the broader benefit of cryptocurrency for ordinary people.” Crypto funding figures are misleading? On the contrary, according to Colin Wu, November’s record in crypto funding is misleading. A single $10.3 billion Naver–Dunamu acquisition inflated the numbers, marking a major step towards corporate control of South Korea’s top exchange. Meanwhile, overall VC deals plunged by 28% month-over-month and 41% year-over-year. This implied that the surge isn’t broad ecosystem…

Here’s why record Crypto VC funding figures are fueling an even bigger question

2025/12/03 19:14

The crypto industry is smashing financial records, but the good news comes alongside a critical caveat.

VC investments break record

November analytics from CryptoRank revealed that Venture Capital (VC) investment in the sector hit an unprecedented high of $14.48 billion. The $14.48 billion surge is over twice the figures seen two months ago and 70% above July’s peak – A sign of growing institutional confidence and crypto’s rising global relevance.

However, while this capital could accelerate development across DeFi, NFTs, and more, it also poses a serious threat to crypto’s core principle – Decentralization.

Ray Youssef weighs in

As Ray Youssef commented on this trend, the worry is that unchecked VC growth could fundamentally alter the market’s landscape.

Instead of a natural, independently developing ecosystem, a shift is occurring where a few large funds, the new institutional players, begin to dominate and shape the entire market.

The concern is that this will result in a centralized system where major investors dictate which projects thrive and which are left to fail. This could lead to a significant redistribution of capital that favors their interests over the organic, grassroots development that defined crypto’s early years.

Remarking on the same, Ray Youssef, CEO of NoOnes, said,

Crypto funding figures are misleading?

On the contrary, according to Colin Wu, November’s record in crypto funding is misleading.

A single $10.3 billion Naver–Dunamu acquisition inflated the numbers, marking a major step towards corporate control of South Korea’s top exchange.

Meanwhile, overall VC deals plunged by 28% month-over-month and 41% year-over-year. This implied that the surge isn’t broad ecosystem growth, but consolidation driven by powerful institutional players.

The path to recovery

AMBCrypto’s latest analysis also highlighted November’s data. Dominated by the colossal Upbit acquisition and high-value centralized deals, it painted a picture of aggressive institutional control. However, the broader 2025 trends might be hinting at a more nuanced and uneven path to recovery.

While the figures for Q3 marked a slight uptick, the rebound remains unconvincing and structurally uneven.

However, the overall investment levels are still a fraction of previous peaks, and deal sizes remain small for consumer-facing sectors like Web3, NFTs, and gaming.

Crucially, as the United States solidifies its lead in crypto ventures with 47% of capital and growing political support, the groundwork for the next cycle is being laid.


Final thoughts

  • The record $14.54 billion in VC fundings in November 2025 is fundamentally misleading, driven by a single, monolithic corporate event.
  • Institutional interest appears more intent on gaining control over the market’s capitalization and infrastructure than on utilizing blockchain technology for its core, decentralizing purpose.
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Source: https://ambcrypto.com/heres-why-record-crypto-vc-funding-figures-are-fueling-an-even-bigger-question/

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