Berlin is attracting most of the funding in Germany’s blockchain industry, according to a recent report indicating investors are now concentrating on the quality of projects.

The study also highlights a significant increase in funding in the space, both within Europe and around the world, with money flowing toward regulated segments of the market.

Report shows German blockchain industry is restructuring

Quality over quantity is the new sentiment in Germany’s crypto ecosystem, the authors of the latest German Blockchain Report have found.

The research, published recently, covers investment figures from the second half of last year and the first two quarters of 2025.

During that time, companies in the country’s blockchain sector received a total of $44.7 million in funding across 13 deals, the stats show.

Analyzing the compiled data, German crypto news outlet BTC Echo noted the numbers register a decline over previous periods.

While Germany’s venture market as a whole is growing by 10.4%, having attracted $9.3 billion, the blockchain segment remains below the trend.

The Bitcoin-focused online edition suggested, however, this is an indication that the Web3 space is in a phase of re-adjustment.

The crypto industry is “by no means losing importance,” the information portal insisted, but is merely “rearranging itself.” It elaborated:

“Investors rely more on quality than mass, which underlines the maturity level of the ecosystem.”

Berlin deemed Germany’s top blockchain destination

German capital Berlin is establishing itself as the most important location in the federal republic, as far as crypto business is concerned, the researchers have found.

The city has attracted 73.2% of all funds invested in blockchain projects, or a total of $32.7 million in nominal figures. The article pointed out:

“The growing concentration shows that technological know-how and investor confidence are increasingly pooling in the capital.”

At the same time, investor decisions are becoming more selective and strategic. This is demonstrated by the decline in the average size of financing rounds to $3.4 million, signaling a shift in focus “from high-risk experiments to viable business models.”

Following a relatively weak first quarter, the Berlin market saw a strong Q2 in 2025, growing by 180% over the previous year. It registered five deals for $20.3 million of capital.

The report has been produced by Crypto Valley Venture Capital (CV VC), a Swiss-based blockchain venture capital firm providing seed and acceleration funding to startups in the space.

The authors of the document also highlighted that blockchain investment has been rising both across Europe and around the world.

It increased by 16.7% on the Old Continent, reaching a total of $2.4 billion. At the same time, global crypto funding rose by over 33%.

“Germany’s weaker course thus acts more like a local dent in the context of a global upswing,” the researchers commented, pointing out:

“Within Europe, Germany’s share of blockchain deals rose to 6% (from 5.5%), however, with a small share of funding, indicating more, smaller transactions.”

According to the study, investors now tend to pick crypto projects in several main fields such as regulated infrastructure, digital identity, and tokenization.

“These areas are considered to be Germany’s core competencies in the blockchain sector and form the basis for the next investment boost,” BTC Echo remarked.

Germany, Europe’s economic powerhouse, is heading into the last quarter of the year with hopes to return to growth amid easing tariff pressures, Cryptopolitan reported this week, quoting the latest projections by Bundesbank, the country’s monetary authority.

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