Announcements Gate Research: May 2025 Web3 Financing Panorama | CeFi Dominates, Blockchain Services Thrives, and Compliance Becomes the New Magnet

Gate Research: May 2025 Web3 Financing Panorama | CeFi Dominates, Blockchain Services Thrives, and Compliance Becomes the New Magnet

2025-06-09 08:54:26 UTC 76039 Read

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This report summarizes the Web3 industry’s fundraising landscape in May 2025. A total of 122 deals were completed, raising $1.92 billion. Among them, the CeFi sector dominated with over $1.2 billion in funding. Traditional financial instruments such as mergers & acquisitions and PIPE investments were frequently employed, indicating that institutional capital is accelerating its deployment into compliant, integrable centralized infrastructure. In terms of deal size, the distribution was characterized by a "middle-heavy, ends-thinning" pattern, suggesting a market-wide shift toward reduced risk appetite and a preference for mid-sized projects with initial validation and growth potential. Regarding deal stages, a K-shaped structure emerged: early-stage projects remained highly active, while capital was increasingly concentrated in later-stage rounds. The report also highlights major projects including Antix, Turtle Club, T-Rex, VOYA Games, and KYD Labs.

** Key Takeaways:**
- Fundraising Overview: In May 2025, the Web3 sector recorded 122 funding deals totaling $1.92 billion, down 35.35% from April's $2.92 billion, though the number of deals rose by 28.4% from 95. This suggests a rebound in market activity despite the overall cooling of the fundraising climate in Q2. As conditions tighten, small and mid-sized projects are facing increased fundraising pressure, and capital distribution has grown more conservative—marking a transition into a new phase centered on "quality-first and selective screening."
- Convergence of Web3 and TradFi: The top 10 deals reveal that institutional capital continues to flow primarily into CeFi, blockchain services, and infrastructure. The frequent appearance of M&A and PIPE deals underscores the accelerating integration between Web3 and traditional finance (TradFi).
- Hot Sectors and Funding Distribution: Fundraising activity was heavily concentrated in CeFi ($1.29 billion) and blockchain services ($274 million), with CeFi taking a dominant position. This reflects institutional investors’ strong focus on regulatory compliance, service capabilities, and integration pathways with TradFi. Deal sizes showed a clear middle-heavy pattern, with deals ranging from $3 million to $10 million accounting for 32.9% of the total. This trend points to a capital preference for mid-sized projects that have already demonstrated some traction and growth potential.
- Active Deal Stages and Key Investors: The fundraising landscape displayed a structural K-shaped pattern: early-stage rounds (seed and strategic) were highly active, making up 64.9% of total deal count, while Series A and B rounds accounted for 60.9% of total capital raised, highlighting a bifurcated market where both early exploration and mid-to-late-stage bets coexist. Alliance DAO led all investors with six deals, focusing primarily on DeFi, while also covering blockchain infrastructure and on-chain services.
- Rapid Progress Among Key Projects: Projects such as Antix, Turtle Club, T-Rex, VOYA Games, and KYD Labs are pushing innovation in areas like AI avatars, on-chain liquidity, Web2-to-Web3 onboarding, and Web3-native ticketing, signaling that beyond infrastructure and TradFi integration, the market remains actively engaged in exploring emerging technologies and novel use cases.

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Gate Team
Jun 9th, 2025
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Gate Research: May 2025 Web3 Financing Panorama | CeFi Dominates, Blockchain Services Thrives, and Compliance Becomes the New Magnet

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