Recent reports indicate that investors are now focused on the quality of projects, with Berlin attracting the majority of funding for Germany’s blockchain industry.
The research also highlights that there has been a significant increase in funding in this sector both within Europe and around the world, with capital flowing into regulated areas of the market.
Report shows Germany’s blockchain industry is being restructured
The authors of the latest German Blockchain Report found that quality over quantity is the new sentiment in the German cryptocurrency ecosystem.
The recently published study covers investment statistics for the second half of last year and the first two quarters of 2025.
According to statistics, during that time, companies in the country’s blockchain sector received a total of $44.7 million in funding in 13 transactions.
German cryptocurrency news agency BTC Echo analyzed the compiled data and noted that the numbers have decreased compared to previous periods.
Germany’s overall venture market has grown by 10.4%, attracting $9.3 billion, but the blockchain sector remains below trend.
However, a Bitcoin-focused online version suggested that this indicates that the Web3 space is in a recalibration phase.
The crypto industry is “in no way losing its importance” but is simply “reshaping itself,” the information portal claimed. It was detailed as follows.
“Investors rely on quality over quantity, which highlights the maturity of the ecosystem.”
Berlin considered Germany’s largest blockchain destination
Germany’s capital Berlin is establishing itself as the most important location in the Federal Republic as far as cryptocurrency business is concerned, researchers have found.
The city has received 73.2% of all funds invested in blockchain projects, or a total of $32.7 million in nominal terms. The article pointed out that:
“The increase in concentration indicates that technological know-how and investor confidence are increasingly being accumulated in capital.”
At the same time, investors’ decisions are becoming more selective and strategic. This is evidenced by the average size of funding rounds decreasing to $3.4 million, indicating a shift in focus “from high-risk experiments to viable business models.”
Following a relatively weak first quarter, the Berlin market had a strong second quarter of 2025, growing by 180% year-on-year. Five transactions were registered with a capital of $20.3 million.
This report was produced by Crypto Valley Venture Capital (CV VC), a Swiss-based blockchain venture capital firm that provides seed and acceleration funding to startups in this space.
The authors of the document also highlighted that blockchain investment is increasing across Europe and around the world.
In the Old Continent, sales increased by 16.7%, reaching a total of $2.4 billion. At the same time, global crypto funding increased by more than 33%.
“Germany’s weakening course therefore acts like a local dent in the context of a global economic upturn,” the researchers commented, noting:
“Within Europe, Germany’s share of blockchain transactions rose to 6% (from 5.5%), but the share of funding was smaller, indicating that more and smaller transactions are taking place.”
According to the study, investors are now more likely to choose crypto projects in several key areas, including regulatory infrastructure, digital identity, and tokenization.
“These areas are considered Germany’s core competencies in the blockchain field and will form the basis for the next investment promotion,” BTC Echo said.
Europe’s economic powerhouse is entering the final quarter of the year with hopes of a growth rebound amid easing tariff pressures, Cryptopolitan reported this week, citing the latest forecasts from the country’s financial regulator, the Bundesbank.
