Report: Cryptocurrency is expected to see a wave of mergers this year, with VCs paying particular attention to stablecoins and AI

Odaily News Investment research firm PitchBook said in a report that in the fourth quarter of 2024, the amount of financing in the cryptocurrency field increased by 13.6% month-on-month to US$2.5 billion, with a total of 351 transactions. Investors made larger investments in a few startups with surging valuations. For the seed round stage, the average pre-investment valuation increased by 70.2% year-on-year.
The report said that although the total amount of funding in the cryptocurrency sector remained stable at $10 billion in 2024, the number of deals declined. Investors mainly invested in early-stage startups, with the median valuation doubling year-on-year to $52 million, while late-stage companies received only 5% of all funding rounds.
PitchBook describes 2024 as a year of “increasing investor selectivity” and expects consolidation among infrastructure providers, exchanges and custodians this year, with VCs particularly keen on two areas: stablecoins and artificial intelligence.