Crypto treasury deals are drawing significant capital away from traditional startup raises in 2025. Venture rounds excluding these deals and token sales fell 56%, with only 856 transactions compared to 1,933 last year. While total funding appears steady at $8.05 billion, Binance’s $2 billion round skews the data—without it, funding drops 26% to $6.05 billion. Digital asset treasuries attract investors through quick liquidity, instant mark-to-market pricing, and premium fundraising opportunities. Many VCs now park funds in such vehicles until attractive startup options arise. Analysts expect market consolidation, leaving only major players focused on BTC, ETH, and SOL after weaker entrants exit the space.