The winds of change are blowing strong in the US crypto sector, as evidenced by the latest data on venture capital flows. With the imminent arrival of the new crypto-friendly administration, the United States is cementing its position as the global epicenter of Web3 innovation and investment.
US Captures Lion’s Share of Global Web3 Funding
According to the “Crypto & Blockchain Venture Capital – Q4 2024” report, venture capital firms overwhelmingly chose to invest in US-based startups last quarter. A stunning 46% of global Web3 venture funding poured into companies headquartered in the United States, dwarfing the next closest country, Hong Kong, at just 16%.
The trend holds true across deal counts as well, with the US capturing 36% of worldwide VC agreements, far ahead of Singapore (9%) and the UK (8%). Regardless of the stage of funding or category of company, Uncle Sam consistently took the top spot in Q4 2024.
Trump’s Promises Spur Investment Reorientation
This dramatic shift in the global crypto landscape can be directly attributed to the pledges made by President-elect Donald Trump during his campaign. The industry swiftly pivoted towards Washington, eagerly anticipating a new era of economic revitalization under a crypto-friendly regime.
The shift from an administration hostile to crypto, which orchestrated Chokepoint 2.0, weaponized regulators, and debanked startups, to a team that is pro-crypto and well-regarded by VCs will be immense. The market has started pricing it in.
– Ryan McMillin, Co-Founder & CIO, Merkle Tree Capital
Even under the allegedly crypto-hostile previous administration, US-based companies ranked among the most powerful in the world. One can only imagine the potential with a government and federal agencies touted as the most pro-crypto in history.
Regulatory Clarity Could Unleash Flood of Capital
The report’s authors expect US dominance to increase further, particularly if key regulatory issues like stablecoins and market structure are resolved. This would pave the way for traditional US financial services firms to make a serious foray into the crypto realm.
The incoming presidential administration and Congress are poised to be the most pro-crypto in history. We anticipate US dominance will grow, especially if specific regulatory questions are addressed, enabling legacy US financial services companies to enter the crypto space in earnest.
– Alex Thorn, Head of Research, Galaxy Digital
Smart money is flooding into the United States, lured by the promise of a golden age for crypto under the Trump team’s leadership. With the inauguration set for January 20th, rumors are already swirling that Bitcoin and other cryptocurrencies could be the focus of immediate executive actions, a move that would reassure investors and crypto-savvy Republican voters eager to see the new President pump their portfolios.
Key Takeaways
- The US captured 46% of global Web3 startup funding in Q4 2024
- Trump’s crypto-friendly stance is spurring a massive influx of venture capital
- Regulatory clarity could further boost US dominance in the crypto sector
- Smart money is betting big on a crypto golden age under the Trump administration
As the Trump era dawns, all eyes are on Washington to see if the new President can deliver on his promises and cement America’s status as the undisputed leader of the Web3 revolution. Billions in capital and the future of the industry hang in the balance.