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Web3’s Funding Growth: Key Investments, July 18–24, 2025

Web3’s Funding Growth: Key Investments, July 18–24, 2025

Abstract

This article, provides a comprehensive overview of key funding rounds, market dynamics, and emerging trends in Web3 investments. Highlighted deals include JuChain’s $100 million Genesis Ark Program, MEI Pharma’s $100 million Litecoin treasury strategy, and Freename’s $6.5 million Series A round. The analysis highlights a strategic focus on infrastructure, digital identity solutions, real-world asset (RWA) tokenization, and alternative funding models like token presales and in-app donations. These trends indicates a robust, diversified, and increasingly institutionalized Web3 funding environment, distinct from the AI-dominated broader VC Terrain.

From July 18 to July 24, 2025, Web3 startups raised over $200 million, contributing to a year-to-date total surpassing $1 billion, already outpacing 2024’s full-year funding by over $1 billion (DL News). This weekly update going forward would consolidate key funding announcements, market dynamics, and forward-looking trends, drawing on data from the Various Web3 funding Trackers

Unlike the broader VC market, where Q2 2025 funding reached $91 billion but was heavily skewed by AI mega-deals (EY), Web3 investments are driven by specialized investors with expertise in token models, governance, and decentralized go-to-market strategies. Could this specialization be associated to a maturing ecosystem, where funding prioritizes projects with tangible utility, advanced products, and sustainable growth over speculative token appreciation?. Emerging funding mechanisms, such as decentralized autonomous organizations (DAOs), initial DEX/EXCHANGE/ATTENTION offerings (IDOs), grant programs, and venture studios, further diversify capital sources, would also be considered going forward.

This article explores the week’s funding highlights, emerging themes, and investor behavior, emphasizing Web3’s distinct growth trajectory. It concludes with a call to action for stakeholders to drive innovation in infrastructure, regulatory compliance, and user experience to realize Web3’s transformative potential.

Weekly Funding Highlights (July 18–24, 2025)

The week of July 18–24, 2025, showcased robust investment activity, with six crypto startups collectively raising over $200+ million (Crypto rank). Below are the key funding rounds, illustrating strategic priorities in infrastructure, institutional adoption, and digital identity.

Protocol A: JuChain’s Genesis Ark Program

On July 22, 2025, JuChain, a high-performance Layer 1 blockchain, launched its $100 million Genesis Ark Program, an ecosystem fund led by the JuChain Foundation with support from JuCoin Labs and lavagoose (Cointelegraph). This initiative aims to accelerate Web3 innovation by investing in projects building on JuChain’s infrastructure. Key focus areas include:

  • DeFi Innovation: Developing next-generation financial protocols and yield strategies.
  • Meme Launchpads: Supporting viral token launches to drive engagement.
  • Stablecoin Infrastructure: Building scalable stablecoin solutions.
  • Real-World Asset (RWA) Tokenization: Bridging traditional assets with blockchain.
  • Web3 Infrastructure: Funding developer tools, data services, and security solutions.
  • Bitcoin Ecosystem Applications: Expanding Bitcoin’s utility beyond a store of value.

The program provides technical guidance, marketing support, and access to JuChain’s growing user base, complemented by a six-month incubation program. JuChain’s proprietary JPoSA consensus mechanism delivers transaction finality in 2–3 seconds, fees under 0.01 JU, and Ethereum Virtual Machine (EVM) compatibility, making it ideal for consumer-facing dApps. By positioning itself as an “on-chain traffic hub,” JuChain reduces customer acquisition costs for dApps, transforming user engagement into tradeable assets. The broader JuCoin ecosystem, including a centralized exchange, Web3 super app (JuCh5), AI-encrypted smartphone (JuOne), gaming platform (JuGame), and innovation hub (JuCoin Labs), enhances its appeal (GlobeNewswire).

Protocol B: MEI Pharma’s Litecoin Treasury Strategy

On July 18, 2025, MEI Pharma, a publicly traded company (NASDAQ: MEIP), secured a $100 million private investment in public equity (PIPE) led by GSR and Litecoin creator Charlie Lee, with participation from the Litecoin Foundation, Mozayyx, Parafi, HiveMind, Primitive, RLH Capital, Delta Blockchain, CoinFund, and others. The investment funds a Litecoin treasury strategy, with GSR serving as a strategic advisor and digital asset manager to structure Litecoin purchases, implement risk management, and ensure institutional-grade custody (Crypto Rank).

This deal indicates a significant evolution in institutional cryptocurrency adoption, extending beyond Bitcoin to altcoins like Litecoin, which benefits from perceived regulatory clarity and resilience. The trend aligns with broader market shifts, such as BIT Digital’s pivot to an Ethereum treasury and Pantera Capital’s prediction that RWAs (excluding stablecoins) will account for 30% of onchain Total Value Locked (TVL) in 2025, up from 15% today (Pantera Capital). By diversifying corporate treasuries into altcoins, institutions are signaling confidence in their long-term viability, which could potentially foster deeper integration of digital assets into traditional finance.

Protocol C: Freename’s Series A Round

Freename, a domain registrar bridging traditional Domain Name System (DNS) with blockchain technology, closed a $6.5 million Series A round on July 22, 2025, led by Entrée Capital and Polymorphic Capital, with support from seed investors Sparkle Ventures, Blockchain Founders Fund, Golden Record Ventures, and angels like Mike Lobanov (Target Global) and Aaron Schnarch (former Coinbase Custody CEO). The funds will drive product innovation, global expansion, and unification of Web2 and Web3 digital identity ecosystems.

Freename’s mission is to enable seamless use of blockchain wallet addresses alongside traditional IP addresses in a regulated manner, addressing a critical barrier to Web3 adoption: interoperability with existing internet infrastructure. By creating user-friendly, compliant digital identity solutions, Freename bridges the old and new internet, a trend poised to attract significant investment as Web3 seeks to onboard the next billion users. This focus on usability and compliance highlights the importance of practical integration for achieving mass appeal (Crypto Rank, Investopedia).

Other Notable Funding Rounds

Additional funding rounds during the week highlight the diversity of Web3-adjacent investments:

  • Octup: A Tel Aviv-based AI operations platform for third-party logistics providers raised $12 million in a Seed round on July 23, 2025, led by Shine Capital and JAL Ventures, with participation from Stone Capital, Tal Ventures, and HCS Capital (Crypto Rank). While primarily AI-focused, its inclusion reflects the growing convergence of AI and Web3.
  • Data Phleet: Secured $6 million in a Pre-Seed round on July 23, 2025 (Crypto Rank).
  • Metly: Raised €20,000 in a Pre-Seed round on July 22, 2025 (Crypto Rank).
  • AIRMDR: Raised $10.5 million in a Seed round on July 22, 2025 (Crypto Rank).

Decentralized Fundings

The decentralized funding rounds includes:

  • Mastodon: On July 23, 2025, Mastodon, an open, decentralized social media platform, introduced an in-app donation feature to address financial challenges inherent to decentralized systems (Tech Crunch). This community-driven approach aligns with its ethos, bypassing traditional equity funding model.
  • DeSoc: Launched a presale for its $SOCS token, offering a model that rewards content creators, integrates with traditional platforms via APIs, and provides low gas fees, decentralized exchange support, and staking opportunities. The absence of VC involvement highlights its community-centric funding strategy, aligning incentives with users.

These examples highlight Web3’s diverse funding settings, with DAOs, IDOs, and token-based models complementing traditional VC. As noted, “Web3 offers a range of fundraising options beyond traditional venture capital,” fostering flexibility and community alignment (Syndika).

The Web3 VC market in the earlier stipulated timeframe exhibits some defining trends, indicating a maturing and increasingly institutionalized ecosystem.

Maturation and Selectivity

Venture capital funds are becoming more selective, prioritizing projects with advanced products and, in some cases, tokenless organizations (Syndika). This shift reiterates a focus on fundamental value, execution capabilities, and sustainable growth over speculative token appreciation. In Q1 2025, Web3 startups raised over $3.2 billion, with early-stage funding dominating, supported by diverse mechanisms like DAOs, IDOs, grant programs, and venture studios (Incrypted).

Infrastructure Focus

Investments in Web3 infrastructure continue to play a pivotal role in the ecosystem’s growth. JuChain recently committed $100 million to its Genesis Ark Program, focusing on developer tools, data services, and security infrastructure (GlobeNewswire). Earlier in 2025, Alchemy introduced its $5 million Everyone Onchain Fund, aimed at easing the cost burden for Ethereum developers through gas and computing credits. Pantera Capital’s track record, dating back to its participation in Alchemy’s Series A in 2019 highlights a steady focus on scalable blockchain solutions (Blockworks). The firm also highlights the importance of scaling infrastructure to support user onboarding and the evolution of development stacks (Pantera Capital). Collectively, these moves reflect a broader recognition that durable infrastructure is foundational to Web3’s long-term scalability and adoption.

Institutional Adoption

MEI Pharma’s $100 million Litecoin treasury strategy reflects growing institutional acceptance of altcoins, driven by regulatory clarity and strategic diversification. This trend aligns with BIT Digital’s Ethereum treasury pivot and Pantera Capital’s prediction that RWAs will account for 30% of onchain TVL in 2025 (Pantera Capital). The increasing prevalence of corporate crypto treasuries signals deeper integration of digital assets into traditional finance, unlocking new capital flows (Morningstar).

Geographic Shifts in Funding

Web3 funding is becoming increasingly global, with significant capital flowing to non-traditional tech hubs. In the first four months of 2025, “undisclosed location” funding rounds amassed $4.9 billion, followed by Malta ($2 billion) and the USA ($1.8 billion). New deals also surged in Canada and the Euro area in April 2025 (DL News). This geographic diversification depicts relaxing regulatory environments and emerging market opportunities, potentially ushering new Web3 innovation hubs beyond traditional tech centers like Silicon Valley (Crypto Rank).

AI-Web3 Convergence

While AI dominates overall VC funding, subtle convergence with Web3 is emerging. Octup’s $12 million Seed round for an AI operations platform highlights overlaps in logistics and blockchain (The SaaS News). The WAIB Summit Monaco 2025 brought together leaders to explore synergies, such as AI-driven on-chain data analysis, protocol security enhancements, and improved user experiences (Coin Telegraph). Pantera Capital’s January 2025 discussion of the “burgeoning AI revolution” emphasizes AI’s potential to enhance Web3 applications, particularly in scalability and usability (Pantera Capital). These developments suggest future investments will target projects leveraging AI to drive Web3 adoption, bridging technical complexity with user-friendly solutions.

Table: Weekly Web3 Funding Highlights (July 18–24, 2025)

Project Name Funding Amount Round Type/Mechanism Date Announced Lead Investors Other Investors Purpose of Funds Brief Description
JuChain $100M Ecosystem Fund July 22, 2025 JuChain Foundation, JuCoin Labs, Lavagoose Projects building on JuChain's Layer 1 Accelerate Web3 innovation, support DeFi, RWA, Web3 infra, Bitcoin ecosystem projects High-performance Layer 1 blockchain, "on-chain traffic hub"
MEI Pharma $100M PIPE Investment July 18, 2025 Charlie Lee, GSR Litecoin Foundation, Mozayyx, Parafi, HiveMind, Primitive, RLH Capital, Delta Blockchain, CoinFund, other financial institutions Launch Litecoin treasury strategy, institutionalize LTC as treasury asset Publicly traded company adopting Litecoin for corporate treasury
Freename $6.5M Series A July 22, 2025 Entrée Capital Polymorphic Capital, Sparkle Ventures, Blockchain Founders Fund, Golden Record Ventures, Mike Lobanov, Rashwan family office, Aaron Schnarch Drive product innovation, expand global footprint, unify Web2/Web3 digital identity Domain registrar bridging DNS and Blockchain for digital identity
Octup $12M Seed July 23, 2025 Shine Capital, JAL Ventures Stone Capital, Tal Ventures, HCS Capital Real-time AI operations for 3PLs AI-powered platform for third-party logistics providers
AirMDR $10.5M Seed July 22, 2025 Not specified Not specified Not specified Not specified
Metly €520K Pre-Seed July 22, 2025 Not specified Not specified Not specified Not specified
Data Phleet $600K Pre-Seed July 23, 2025 Not specified Not specified Not specified Not specified
Mastodon Undisclosed In-app Donations July 23, 2025 Community-driven Not applicable Address financial challenges, support decentralized social media Open, decentralized social media platform
DeSoc Undisclosed Token Presale July 24, 2025 Community-driven Not applicable Reward content creators, enable low-fee transactions, staking Decentralized social media with native $SOCS token

Table 1: Key Web3 funding activities for July 18–24, 2025

Resurgence in Web3 Funding

The $200+ million raised in the week of July 18–24, 2025, contributes to a year-to-date total exceeding $1 billion, surpassing 2024’s full-year funding by over $1 billion (DL News). In contrast, global VC funding in Q2 2025 reached $91 billion, up 11% year-over-year but down 20% quarter-over-quarter, heavily skewed by a $40 billion AI deal (EY). Web3’s $2.8 billion raised in June 2025 across 109 projects and $757 million in May highlights its distinct growth trajectory (Incrypted).

This resurgence is strategic, with VCs prioritizing projects with demonstrable utility and robust business models. Pantera Capital’s prediction of 2025 as a “tipping point” for crypto adoption highlights new distribution models, such as JuChain’s traffic-driven ecosystem, which reduces customer acquisition costs for dApps (Pantera Capital). The GENIUS Act, signed on July 18, 2025, further bolsters confidence by reducing regulatory risks, encouraging institutional investments like MEI Pharma’s Litecoin strategy. This selective, utility-driven approach contrasts with earlier speculative waves, fostering sustainable growth and a higher bar for Web3 startups seeking funding.

Looking Ahead and Conclusion

The Web3 VC space reflects a maturing, resilient ecosystem, marked by strategic investments in infrastructure, institutional adoption, and evolving funding models. Trends point toward sustained investment in projects offering real-world utility—particularly in RWA tokenization, which Pantera Capital estimates will comprise 30% of onchain TVL this year. Alternative models such as Mastodon’s in-app donations and DeSoc’s token presale underscores community-aligned capital formation, complementing traditional venture funding.

The passage of the GENIUS Act on July 18 has added regulatory clarity around stablecoins, boosting institutional confidence and encouraging fresh capital inflows. As Web3 expands geographically and intersects with AI, investments targeting infrastructure, digital identity, and user-friendly applications will shape its path to mainstream adoption.

To realize Web3’s promise of a decentralized, user-first internet, developers must focus on scalable and interoperable infrastructure, investors should support projects with tangible utility, and regulators must continue building clear, supportive frameworks. Collaboration across these pillars will be key to onboarding the next billion users and transforming the global digital economy.

References

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