Crypto’s “Great Consolidation”: The Era of Easy Money Is Over as an M&A Frenzy Begins

The crypto industry is in the middle of a great reshuffling. A new report shows that while venture capital, VC funding has dried up, the pace of mergers and acquisitions (M&A) is on track to set a new all-time high this year, signaling a major shift in the crypto market.

So far in 2025, 185 M&A deals have already closed. According to data from the analytics firm Messari, at the current pace of nearly 29 deals per month, the year 2025 will exceed 340 total deals, which would be a new record.

An M&A Boom and a VC Bust

The once-flowing river of VC funding has slowed to a trickle. In May 2025, only 62 crypto VC deals were recorded, the lowest monthly number since early 2021. In a sharp contrast to the M&A boom, new crypto fund launches have also collapsed. Back in 2022, 136 crypto funds raised over $100 million each. In 2025 so far, that number stands at just 13.

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With higher interest rates and shaky global markets, limited partners are now far more cautious about committing capital to volatile assets. As a result, crypto companies are being forced to look inward, and mergers have become the preferred strategy to extend their financial runways, pool talent, and gain scale.

Focus on Strategy and Utility

Large players are using this environment to scoop up strategic assets. Coinbase’s $2.9 billion acquisition of the derivatives platform Deribit marked a milestone in this trend.

Beyond that headline deal, infrastructure providers and compliance-focused platforms are drawing the most attention. Acquirers are prioritizing operational efficiency and long-term positioning, rather than betting on speculative growth.

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Additionally, sectors aligned with AI and blockchain infrastructure continue to attract strategic interest. These areas are seen as essential to the next wave of crypto applications, which must now prove utility rather than promise hype.