Monthly crypto funding finally rising: Are private investors putting more money into the market again?

The monthly crypto funding has begun to increase after relatively consolidating since 2023. According to DefiLlama, the figures recorded at the end of December reveal a potential initial trend in the metrics rise in 2025.

The monthly crypto funding has begun to rise after nearly two years of consolidation. Data from DeFiLlama, a decentralized finance data aggregating website, shows that the monthly crypto funding recorded in December has broken through a two-year consolidation. The sudden increase in crypto funding towards the end of 2024 could potentially mark the beginning of a successive trend moving into 2025. 

Monthly crypto funding from private investors begins to rise

Monthly crypto funding is finally going up!

It’s still far below 2021 levels, but the recent increase shows private investors are putting more money into the market again. pic.twitter.com/VVBlZqVeVh

— Satoshi Club (@esatoshiclub) January 10, 2025

The levels recorded in December are close to $2 billion, the highest since the end of 2022. The monthly crypto funding peaked towards the end of 2021 at just above $7 billion after a successively increasing trend that began at the end of 2020. The current figures are still far below 2021’s peak figures. However, the trend shows private investors are actively investing in the market once again.

Last year, a report compiled by law firm Barnes & Thornburg revealed that 59% of U.S. private investors are more likely to explore investment opportunities in crypto funds from 2024 to 2025. The survey also revealed that 84% of participants were convinced that private investment in the digital asset arena would rise in the next twelve months until August 2025. The survey interviewed 138 limited partners, general partners, and service providers in various institutions across different industries.

A separate survey conducted by Bank of America at the beginning of 2024 in partnership with research firm Escalent unveiled new findings about private investments in the crypto sector. 

The survey revealed that younger wealthy generations are increasingly looking beyond the traditional stock and bond markets to build their wealth. Investors are driving demand for investment vehicles such as digital assets and gold. The report highlighted that those between the ages of 21 and 43 had the majority of their wealth in real estate and digital assets, accounting for 31% and 28%, respectively.

The Securities and Exchange Commission approved spot Bitcoin and Ethereum ETFs. These investment vehicles have paved the way for fresh capital from private investment.

According to U.S. spot ETF tracker Sosovalue, American-approved spot Bitcoin ETFs managed $106.82 billion at the time of this publication. The ETFs gained massive popularity after pro-crypto candidate Donald Trump emerged victorious in the 2024 U.S. presidential elections, bringing a wave of optimism to the sector.

Bitcoin emerges as a strategic reserve asset for institutions and governments

Bitcoin, an asset that was closely associated with criminal activities during its early stages of development, is now bearing a hallmark of institutional and potentially government acceptance.

Institutional investors, including private equity firms, family offices, hedge funds, traditional money managers, and publicly traded companies, have begun to divert their surplus cash to Bitcoin in a bid to diversify their portfolios and maximize their returns.

So far, several publicly traded companies have joined the bandwagon by directing part of their surplus cash in Bitcoin and Bitcoin investment funds in a bid to increase shareholders’ value and overcome inflation. At the time of this publication, data from Bitcoin treasuries shows that Microstrategy is the largest corporate Bitcoin holder in the world, with 447,470 Bitcoin worth $42.56 billion at Bitcoin’s current price of $95,112. 

In November last year, advanced battery materials provider Solidion Technology announced it had adopted Bitcoin as a strategic reserve and would allocate a significant portion of its excess cash reserves to purchase the asset. The company stated in a press release that it would commit 60% of excess cash from operations to purchasing Bitcoin. 

The company also announced that it will convert interest earnings in cash held in money market accounts to Bitcoin. Solidion pledged to undertake future capital raises and use the funds to increase its Bitcoin holdings, a playbook mimicking Michael Saylor’s strategy. Governments are also exploring Bitcoin as a strategic reserve asset after President-elect Donald Trump promised to adopt it for the U.S. Treasury. Countries such as Russia, Hong Kong, Germany, Poland, and Brazil have conducted discussions to follow the U.S.

Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap