Analyst: Total capital deployed by crypto VCs from 2023 to 2025 equals 2022 fundraising.

PANews, February 17: Crypto KOL Edgy posted on X that 85% of tokens issued in 2025 are currently underwater. Among projects backed by venture capital firms, many barely break even, while several are suffering severe losses. According to a Galaxy Research chart, in the second quarter of 2022, crypto venture capital firms raised nearly $17 billion across more than 80 new funds in a single quarter. Today, VC returns have declined consistently since 2022, the number of new funds has hit a five-year low, and last quarter’s fundraising amounted to only 12% of the second quarter of 2022. Moreover, the $8.5 billion invested by VCs last quarter was not new capital—it came from leftover funds raised in 2022. The total capital deployed between 2023 and 2025 is roughly equivalent to the amount raised in all of 2022. The model of fundraising, token issuance, and retail dumping is coming to an end. Edgy believes that as venture capital influence wanes, the projects that will ultimately succeed are those with real users and real revenue. This shift will lead to fairer token launches and fewer insider sell-offs.