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Venture Funding Surges in Crypto Sector With Over $1 Billion Raised After Trump’s Election

2 mins
Updated by Daria Krasnova
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In Brief

  • The crypto industry has seen a sharp rise in funding, with startups raising $1.3 billion from venture capitalists since Trump's election victory.
  • Major contributors include the Avalanche Foundation's $250 million token sale and substantial investments in crypto infrastructure and DeFi projects.
  • This funding surge is driven by optimism around Trump's pro-crypto stance, regulatory clarity, and key appointments in sectors like the US SEC.
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The crypto industry has experienced a surge in investment, with projects raising over $1 billion from Venture Capital (VC) funds since Donald Trump’s election victory.

This influx of capital reflects growing optimism about a more favorable regulatory environment under the incoming administration.

Crypto Projects Attract Over $1 Billion in Funding

Since Trump’s election victory on November 6, crypto projects have attracted approximately $1.3 billion in funding. DefiLlama data shows that VCs contributed $796 million in November and an additional $511 million in December.

The Avalanche Foundation emerged as the largest fundraiser during this period, securing $250 million through a private token sale. This funding aligns with the network’s upcoming Avalanche9000 upgrade, scheduled for December 16, which promises to enhance blockchain scalability and reduce costs.

Crypto VC Funds Raise
Crypto VC Funds Raise. Source: DeFiLlama

Venture capitalists have significantly increased their interest in crypto infrastructure projects. They directed over $500 million toward infrastructure developers, with Zero Gravity Labs raising $40 million and Bitcoin miner Canaan Creative securing $30 million in notable funding rounds.

Meanwhile, the DeFi sector also saw a boost, receiving more than $150 million in funding. Key investments included $45 million for USDX Money and $30 million for World Liberty Financial. This resurgence follows a recovery in the DeFi market, with the sector now attracting interest from both retail and institutional investors.

The funding spike is linked to anticipation of a pro-crypto stance in the upcoming administration. Trump has expressed strong support for the crypto industry, pledging to bring long-awaited regulatory clarity and establish a Strategic Bitcoin Reserve (SBR) in the United States.

Since his election win, Trump has announced several pro-crypto appointments. These include Paul Atkins as the proposed chair of the Securities and Exchange Commission (SEC) and David Sachs as the White House’s first crypto czar.

Experts believe these appointments could drive regulatory clarity, remove barriers to institutional adoption, and foster greater investment in the sector.

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Oluwapelumi Adejumo
Oluwapelumi Adejumo is a journalist at BeInCrypto, where he reports on a broad range of topics including Bitcoin, crypto exchange-traded funds (ETFs), market trends, regulatory shifts, technological advancements in digital assets, decentralized finance (DeFi), blockchain scalability, and the tokenomics of emerging altcoins. With over three years of experience in the industry, his works have been featured in major crypto media outlets such as CryptoSlate, Coinspeaker, FXEmpire, and Bitcoin...
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