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As we kick off Q4, it's time to reflect on a blockbuster September that reaffirmed crypto's evolution from speculative playground to institutional powerhouse. September stood out as a pivotal month, with Bitcoin reclaiming $110K highs, Ethereum's Fusaka upgrade slashing fees, and post-election liquidity from the Fed's rate cuts.

Funding activity exploded. We're seeing institutions not just dipping toes but diving in, channeling billions into infrastructure, DeFi, and real-world assets (RWAs). This isn't the 2017 ICO frenzy; it's mature capital investing in trillion-dollar opportunities.

For you, our readers, and battle-tested investors who've navigated bear markets and bull runs, this edition cuts through the noise with data-driven insights. We'll cover the numbers, spotlight mega-deals, break down sectors and trends, and peer into Q4's horizon. If you're allocating fresh capital or hedging portfolios, these are the signals to watch. Let's dive in.

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Now, let’s get back to the deep dive.

Key Aggregated Metrics

September 2025 shattered records, with total funding estimates varying by source due to differing scopes (e.g., VC-only vs. including IPOs, PIPEs, and debt). Drawing from aggregated reports like The Tie, RootData, and Messari, here's a snapshot.

Metric

Value (VC-Focused)

Value (Broad Including IPOs/PIPEs)

Comments

Total Funding Raised

$5.12B (62 rounds)

$7.02B (154 companies)

Key narratives include AI, DeFi, Infrastructure Providers, Layer 1, Payments, Real-World Assets, Security, Staking Providers, Trading, Token Issuers, and Wallet Services.

Number of Deals

62

154

Fewer rounds but larger checks signal flight to quality.

Average Deal Size

$82.6M

$45.6M

Mega-rounds in treasuries and RWAs drove up the size of offerings.

Top Sectors by Volume

DeFi ($542M)

Digital Asset Treasuries ($3.55B)

RWAs and CeFi close behind at ~21%.

These figures represent a maturing ecosystem, as 2025's funding already exceeds 2024's, positioning us for a potential all-time high year. For on-chain natives, note the correlation with ETF inflows ($1.3B in September) and reduced volatility, which are prime conditions for sustained growth.

Top Deals Spotlight

The month's firepower concentrated in institutional-grade plays, with Nasdaq listings and treasury strategies leading the way. Here's a curated top 10, focusing on those with portfolio implications (e.g., tokenomics, yields, and chain integrations). I've prioritized deals with disclosed investors and strategic angles for alpha hunters.

  1. Forward Industries (Nasdaq: FORD) - $1.65B PIPE: Solana treasury pivot led by Galaxy Digital, Jump Crypto, and Multicoin. Expect DeFi yield integration; SOL holders, watch for ecosystem boosts.

  1. Figure Technology (Nasdaq: FIGR) - $787M IPO: RWA trailblazer underwritten by Goldman and BofA, tokenized real estate/loans on Ethereum L2s, bullish for $ETH and RWA protocols like Centrifuge.

  1. StablecoinX (via TLGY Acquisition) - $530M Additional Funding: Pre-Nasdaq stablecoin issuer with 3B+ ENA tokens. Pairs well with Ethena's USDe for yield; institutional stable demand is skyrocketing.

  1. Helius Medical Technologies (Nasdaq: HSDT) - $500M+ PIPE: SOL treasury with Pantera and HashKey. Asia expansion vibes; could top $1.25B with warrants, monitor for cross-chain DeFi plays.

  1. ETHZilla (Nasdaq: ETHZ) - $350M Convertible Bonds: ETH/RWA focus holding 102K ETH. Cheap capital at 2% interest; treasury diversification into Aave/Morpho could juice yields.

  1. Flying Tulip - $200M Seed: Andre Cronje's on-chain exchange with Brevan Howard, DWF Labs. $1B FDV with redemption rights, TON/Solana ties for liquidity pros.

  1. Fnality - $136M Series C: CBDC settlements led by WisdomTree, BofA. Bridges TradFi/crypto, key for euro/USD stables like USDC/EURS.

  1. Tron Inc. - $110M Investment: TRX treasury boost to $220M+. Bullish for JustLend/SunSwap yields in the TRON ecosystem.

  1. Zerohash - $104M Series D: $1B val led by Interactive Brokers, Morgan Stanley. Custody/infra powering fintechs, watch for OnePay crypto ties.

  1. Bit Digital (Nasdaq: BTBT) - $100M Convertibles: ETH/RWA mining pivot underwritten by Barclays. Signals broader treasury shifts.

Late-month highlights from Messari include xMoney ($21.5M, Sui-led stables), Ethena ($14M, USDe expansion), and KGeN ($13.5M, AI/DeFi). These aren't just cash grabs; they're building defensible moats with on-chain utility.

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Now, let's continue with the deep dive.

September's flows revealed clear winners, with money gravitating toward scalable, yield-generating sectors. Here's the breakdown:

  • Dominant Sectors: Digital Asset Treasuries led at $3.55B (11 rounds), reflecting corporates such as Forward and ETHZilla stacking crypto for their balance sheets. DeFi followed with 23 rounds (~$542M, 26% of VC), fueled by perps and lending upgrades. CeFi claimed ~21%, RWAs/DePIN 6.5%, and AI/L1/L2 ~13% each. RWAs have exploded, with tokenizing assets like real estate unlocking trillions, as evidenced by BlackRock/Fidelity inflows accelerating this trend.

  • Money Flow Insights: The majority (~50%) poured into U.S./Nasdaq plays (e.g., Figure, StablecoinX), signaling a convergence of traditional finance (TradFi). Asia (HashKey, Temasek) and Europe (Fnality) gained traction, while emerging markets saw funds like Lisk's $15M EMpower. VC-backed seeds (24 deals, $364M) were favored, but PIPEs/IPOs drove volumes, as pickier investors bet on proven teams amid BTC swings.

  • Stage and Geo Trends: Early-stage dominated count, late-stage the dollars. Top investors (Pantera, Jump, Galaxy) hit 22+ rounds; TradFi crossovers (Morgan Stanley, Citi) validate maturity. Watch Asia for cross-border RWAs.

Overall, flows shifted from hype-driven (e.g., memes) to utility-focused, with RWAs and AI-blockchain as undervalued gems for 100x upside.

Broader Insights and Risks

This surge in September 2025 funding is directly tied to macroeconomic tailwinds that have been building momentum across the ecosystem. The Federal Reserve's resumption of rate cuts, after a brief pause, played a starring role in avoiding the typical "September slump" that has plagued crypto in past years, injecting liquidity and spurring a broader risk-on rally.

Regulatory nods, such as the SEC's Spring 2025 agenda outlining new rules for crypto assets and deregulatory initiatives, provided much-needed clarity, encouraging institutional participation and faster approvals for exchange-traded products (ETPs).

Good ETF inflows for the month, correlated with Bitcoin's push to highs around $115K-$124K before retreats, and Ethereum breaking $4,953 amid its Fusaka-driven efficiency gains. This environment also saw gold surging alongside crypto, highlighting a "debasement trade" where investors hedge against fiat weakening, with tokenized assets and stablecoins gaining traction as bridges to traditional finance.

On the other hand, risks are mounting, and demand for vigilant portfolio management is growing. Market volatility persisted, with BTC experiencing sharp pullbacks after its peaks, driven by a decline in on-chain activity and lower blockchain revenues as volatility normalized.

Token unlocks remain a key pressure point; they could trigger sell-offs if not absorbed by fresh liquidity, potentially exacerbating downside in overleveraged positions. The 15 acquisitions made during the month signal accelerating consolidation, which is bullish for efficiency but could squeeze out smaller players and lead to monopolistic risks in sectors such as CeFi and infrastructure.

Beyond market dynamics, crypto crime escalated alarmingly, with H1 2025 alone seeing $3B in illicit activity, including rapid laundering schemes and emerging physical threats, such as extortion tied to wallet vulnerabilities.

Cyber risks are also evolving, particularly around tokenized funds and digital assets, where non-bank actors are introducing new tools but exposing gaps in security and risk assessment.

For crypto natives, on-chain forensics reveal treasury strategies that yield 5-10% APY via DeFi protocols, but this comes with smart contract risks and impermanent loss exposure; always stress-test with simulations. Broader macro uncertainties, such as potential U.S. government shutdowns or geopolitical tensions, could amplify these issues, turning rallies into traps.

Q4 Outlook: More IPOs, AI Focus, and Bullish Tailwinds

Looking ahead, Q4 2025 is poised to be a transformative period for crypto's integration into mainstream markets, building on the momentum from earlier in the year with predictions of over $200B in total crypto IPO value across 2025 as the thaw accelerates.

This could mark 2025 as the "Year of the Crypto IPO," with at least five unicorns expected to go public in the U.S., pushing the sector toward greater liquidity, regulatory acceptance, and institutional validation.

Expect a continued wave of listings as market conditions improve. BitGo is slated for an October debut, while CoinShares aims for a Q4 SPAC merger at a valuation of approximately $1.2B.

Potential dark horses include InterLink Network (backed by Goldman and JPM for a Q4 push), following in the footsteps of earlier successes like Figure and Circle. Experts highlight how this IPO surge bridges the gap between cryptocurrency and traditional capital markets, enhancing liquidity for tokens and fostering better regulation, which is crucial for long-term adoption.

Beyond IPOs, the AI-blockchain convergence is a top conviction bet for explosive growth, with projects like Zama ($130M raised), Sentient ($85M), and Allora ($33.8M) primed to dominate as their token generation events (TGEs) roll out, capitalizing on compute demands and agent tooling.

Q4 is stacked with at least 24 blockchain projects gearing up for TGEs or mainnet launches, including high-profile ones like Monad ($244M L1 for scalable EVM), MegaETH ($58M L2 for high-throughput), OpenSea ($422M NFT revival), and Polymarket (prediction markets riding election tailwinds).

Other notable projects include Moonwalk Fitness (DeFi wallet), Phi, Fleek, NOVAS, Rainbow, Anoma, and even niche plays like Meteora DEX and MandalaChain. RWAs remain scorching hot, with Solana-based tokens leading the charge in tokenized treasuries and real estate. Watch for AUM spikes as non-U.S. access scales.

Macro tailwinds are aligning for a risk-on Q4: Fed rate cuts are loosening conditions, MiCA's EU rollout enforces compliance while enabling growth, and ETF inflows could clash with profit-taking, leading to choppy but ultimately bullish action.

Bitcoin's outlook is optimistic, with analysts forecasting a price range of $140K-$200K by year-end, driven by post-halving dynamics and a potential rally into full bull mode. Ethereum could hit $5.5K-$6K on L2 growth and staking hype, while altcoins offer asymmetric setups via fee buybacks.

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