November Crypto Venture Funding Hits Record $14.48 Billion, Raising Centralization Concerns

In November 2025, the amount of venture capital invested in the cryptocurrency industry reached a new high of $14.48 billion, doubling from two months earlier and 70% higher than the July peak, signaling a significant increase in institutional confidence. However, behind this massive inflow of funds lies growing concern over the decentralization principles of the crypto market.

According to CryptoRank data, this capital will drive the development of DeFi, NFT, and Web3 sectors, but Ray Youssef points out that large institutional investors may dominate the market landscape, deciding which projects succeed and which are marginalized. This trend could lead to capital reallocation, allowing the interests of a few large investors to outweigh those of early organic ecosystems, raising questions about the status of retail investors and market fairness.

On the other hand, according to analysis by Colin Wu, this record-breaking fundraising is somewhat misleading. The overall figures were inflated by the $10.3 billion acquisition of a leading Korean exchange by Naver, while in reality, the total amount of venture capital transactions fell 28% month-over-month and 41% year-over-year. This indicates that market consolidation and large institutional moves are the main drivers behind the data spike, rather than a broad recovery of the entire ecosystem.

AMBCrypto points out that November’s data reflects the dominant position of institutional investors in the market. Although the third quarter showed an overall rebound, the investment structure remains unbalanced, with transaction volumes in consumer-facing NFT, gaming, and Web3 sectors still limited. With US capital accounting for 47% and supported by political backing, the foundation for a new cycle in the crypto market is gradually being laid.

Overall, while the cryptocurrency industry is experiencing record-breaking venture capital inflows, the trend toward capital concentration highlights the need for the market to be vigilant about centralization risks, while also underscoring the pivotal role of institutional investment in shaping the future market landscape.