Crypto venture capital (VC) funding is expected to rebound in 2025, driven by regulatory clarity and supportive policies under President Trump, as highlighted in a JPMorgan report. However, funding levels are unlikely to return to the highs of 2021-2022 due to increased competition from traditional financial institutions, which are encroaching on the crypto space. Additionally, many crypto projects are shifting towards community-driven funding models, reducing reliance on VC. Challenges such as high interest rates and the rise of cryptocurrency ETFs could dampen enthusiasm for VC investments. The evolving landscape requires venture capital firms to adapt to stay competitive.