JPMorgan analysts have said that crypto venture capital funding is expected to increase in 2025, but may not reach the levels seen in 2021 and 2022. Analysts have noted that while regulatory transparency in the United States and Europe is expected to encourage more investment, other factors have also created new challenges for venture capital. Analysts point to competition from large institutions, high interest rates, and the rise of platforms like ETFs and Echo as major challenges for venture capital firms. Going forward, crypto venture capital firms are expected to prioritize projects with tangible user adoption and focus on long-term growth over traditional short-term metrics like total lock-in value and token economics, the analysis said.