In the fourth quarter of 2024, venture capital firms invested $3.5 billion into crypto and blockchain startups, marking a 46% increase from the previous quarter. This surge is the highest amount seen in two years, despite a 13% drop in overall activity. For the entire year, total venture capital investment in the crypto sector reached $11.5 billion, according to a report by Galaxy Research. Additionally, PitchBook reported that investors put $74.6 billion into U.S. startups during the same quarter, a substantial rise from an average of $42 billion in the previous nine quarters, with $32 billion allocated across just five deals. These developments indicate a potential recovery in the venture capital market as it moves into 2025, with AI dominating investment deals and increasing exit values being noted in the PitchBook-NVCA Venture Monitor report.