TL;DR

• US real GDP decreased for 0.3% in the first quarter of 2025 according to advance reading as panic purchases ahead of tariffs fueled imports.
• FOMC meeting this Wednesday, no change in interest rates expected but potential signs of policy changes will be closely observed.
• BTC and ETH remain stable while altcoins drop by average 3%.
• Market attention remained focused primarily on Solana-based meme tokens and the Binance Alpha Points airdrop.
• Newly listed tokens have shown improved short-term performance, breaking the trend of consistent post-listing declines.
• dao5 closes $222M Fund to back institutional blockchain adoption.
• Re7 Capital launches $10M fund to push SocialFi conviction.
• Interchain Foundation backed for Stride to catalyze DeFi activity on Cosmos.
• Last week, the most funded projects were infrastructure sector.

Macro Overview

US real GDP decreased for 0.3% in the first quarter of 2025 according to advance reading as panic purchases ahead of tariffs fueled imports.

The advance reading of US real GDP, published by the Bureau of Economic Analysis last Wednesday showed that it contracted at an annual rate of 0.3%. This is the first reversal after nearly 3 years of solid economic growth. Tariff-related uncertainty accelerated foreign imports and spending, and raised fears of a potential recession.

The economic slowdown primarily came from a dramatic increase in imports, which counted against GDP, as businesses rushed to purchase foreign goods ahead of tariffs. A drop in government spending also lagged the GDP growth, and consumer spending also slowed down compared to previous months. However, the predictions from other institutions varied widely, as the Atlanta Fed’s economic model predicted a 1.5% decrease and the New York Fed’s forecasted a 2.6% growth. The varieties in trade, inventories and consumer spending make it particularly tough to estimate the state of the economy.

The May FOMC meeting will be held this Wednesday, and the market expects no changes in the interest rates. Signs of potential policy changes will be closely observed during Powell’s speech, as well as analysis on the current economic climate. Last week’s strong labor market data increased the chance of no change in next month’s FOMC meeting though, as potentially the Fed will wait for more convincing data to indicate the necessity of an interest rate cut. This week’s other economic data will include ISM Service PMI on Monday and trade data on Tuesday.

The dollar index has been rising for the most of the time during the last week, as optimism grew about easing of tariff deals’ tensions with major US trade partners. The dollar index fell slightly on Friday though, as labour market data suggested stable and strong job offerings.

The total assets decreased for $17.653bn last week and landed at $6.709tn. The majority of the reduced assets came from mortgage backed securities, which dropped $12.46bn.

Gold price slipped to a two-week low last week, mainly due to the signals of softening trade tensions and holidays in China, which is one of the top consumer economy entities of gold. The gold price was $3,240.93 last Friday when market closed.

Crypto Markets Overview

1. Main Assets

As of this Monday, Bitcoin was priced at $95,000 and Ethereum at $1,850, with both recording a flat performance on a week-over-week basis.

April marked a period of technical recovery following the sharp correction in March. Nonetheless, we adopt a cautious stance heading into May. In the absence of substantial macro-level liquidity injections, the likelihood of a broad-based rally across altcoins remains limited.

Last week, market attention remained focused primarily on Solana-based meme tokens and the Binance Alpha Points airdrop.

2. Total Market Cap

Last week, the total cryptocurrency market capitalization stood at $2.91 trillion. Excluding BTC and ETH, the altcoin market cap was $807.3 billion, representing a week-over-week change of 0% and -3.2%, respectively.

3. Top 30 Crypto Assets Performance

Last week, BTC and ETH remained stable. Hype surged by 12.5%, while most other altcoins declined. Among them, HBAR and AVAX dropped by more than 10%. After rallying nearly 50% the previous week, SUI also fell by over 8%.

4. New Listing

Last week, the majority of newly listed tokens were meme coins, predominantly launched on the Solana network.

In addition, several notable project developments took place: Sign Protocol was listed on Binance’s main platform, experiencing an initial decline followed by a rebound.

OKZOO, which surged over 300% after its Binance Alpha airdrop, is a project focused on AI-powered DePIN devices. Its first product is a digital pet capable of dynamically adapting its characteristics based on environmental changes through AI technology.

Headel was listed on Bybit’s main platform, and a post-listing dip followed by a recovery was also noted.

In contrast, Milkyway, which was launched via Binance Alpha, declined upon listing and subsequently entered a consolidation phase.

The Key Crypto Highlights

1. dao5 closes $222M Fund to back institutional blockchain adoption

Crypto venture firm dao5 has closed a $222M second fund, building on its $125M debut raised in 2022. Founded by former Polychain partner Tekin Salimi, dao5 has already deployed its first fund into projects like Berachain and Bittensor, achieving a 1x DPI and strong LP confidence. The new fund will continue backing early-stage crypto startups, with a sharper focus on practical applications such as stablecoins and tokenization. Salimi’s legal background and early exposure to crypto deal structuring, including token warrants, have shaped dao5’s founder-centric and advisory-heavy investment approach. While previous cycles emphasized speculative or long-horizon concepts like NFTs, dao5 is now positioning itself to support institutional blockchain adoption, reflecting a shift in market demand. The firm’s LP base for this fund includes high-net-worth individuals and family offices, with crypto investor George Lambeth joining as a general partner. Despite macro headwinds and muted token price action, dao5’s disciplined early-stage focus and full deployment record have positioned it well for continued success in a consolidating venture environment.

2. Re7 Capital launches $10M fund to push SocialFi conviction

Re7 Capital, a crypto investment firm managing over $600M in digital assets, has launched a $10M venture fund to back early-stage SocialFi startups, marking a bold move into a sector still waiting for mainstream traction. The fund aims to support 25–30 teams with initial checks of $100K–$300K, reserving capital for follow-ons. Despite SocialFi’s early stage, it was crypto’s most important vertical, citing aligned infrastructure, developer talent, and shifting user behavior. Platforms like Lens Chain and Farcaster are lowering the technical barriers for developers, offering frameworks with low fees, fast finality, and embedded social/financial primitives. Re7’s fund will invest across ecosystems, with over 200 teams now building in the space, expected broader adoption within 12–24 months, driven by creators directly monetizing attention and onboarding their audiences. Re7 views this as a high-conviction, early bet on a future where social interactions are deeply financialized and onchain.

3. Interchain Foundation backed for Stride to catalyze DeFi activity on Cosmos

The Interchain Foundation has invested in Cosmos-based liquid staking protocol Stride to support the development of Stride Swap, a decentralized exchange designed to facilitate asset swaps between Cosmos and Ethereum. Optimized for Cosmos Hub’s IBC Eureka upgrade, Stride Swap will offer permissionless vaults, customizable liquidity provision, and cross-chain bridging functionality. The DEX is part of a broader initiative to position Cosmos Hub as a central liquidity layer in the multichain ecosystem. While the size of the investment was not disclosed, this marks a strategic move by the Interchain Foundation to catalyze DeFi activity on Cosmos. Stride plans to deepen its integration with Cosmos Hub by exploring ATOM buybacks and revenue-driven burns. With Stride Swap under active development and a launch expected in the coming months, this initiative underscores the evolving role of Cosmos in the multichain DeFi landscape. Stride, which raised $6.7M in 2022 from Pantera, North Island VC, and others, currently manages over $30M in TVL across the Cosmos ecosystem.

Key Ventures Deals

1. Unto Labs raises $14.4M to build RISC-V_based for new VM Infrastructure

Unto Labs has raised $14.4M in a Seed round led by Framework Ventures and Electric Capital to develop ThruVM, a new virtual machine built on RISC-V architecture for the Thru blockchain. Founded by former Ethereum and Solana core engineers, Unto Labs aims to overcome the limitations of traditional crypto virtual machines, which they argue alienate non-crypto native developers and restrict hardware compatibility. ThruVM is designed to align more closely with conventional computing environments like servers and laptops, offering improved performance, broader tooling, and easier integration for mainstream developers. The planned Thru blockchain will compete with networks like Ethereum and Solana, supporting transactions, DeFi tools, and smart contract interactions. Unlike typical blockchain models that rely on protocol-level fees, Unto plans to generate revenue directly by developing and monetizing applications built on its own chain.

2. Zar secured $7M in Seed round to enable physical stablecoin cash-ins to corner stores globally

Zar, a stablecoin infrastructure startup, has raised $7M in seed funding from Dragonfly Capital, Andreessen Horowitz, VanEck Ventures, Coinbase Ventures, and Solana co-founders to build a global, physical stablecoin exchange network. Zar aims to allow users in emerging markets to exchange cash for stablecoins at local corner stores, especially in inflation-prone or underbanked regions. The project will leverage the existing infrastructure of 28M mobile money agents, who already process over $1.5 Trillion annually, to enable this service in countries like Nigeria, Pakistan, Bangladesh, Indonesia, Lebanon, and Argentina. Nearly 100,000 users are already on the waitlist, with over 7,000 vendors expressing interest. Zar’s model lets users scan a QR code at a store, confirm details via its app, hand over cash, and receive stablecoins directly in their wallets. Vendors set their own exchange rates and earn through markups, while Zar takes a fee per transaction. The service isn’t yet live but is expected to launch by the end of summer.

3. Dinari Raises $12.7M in Series A to expand tokenized U.S. Stock access for global investors

Dinari, the platform offering tokenized U.S. equities for non-U.S. investors, has raised $12.7M in a Series A round led by Hack VC and Blockchange Ventures, with participation from VanEck Ventures, F-Prime, and the Avalanche Fund. This brings its total funding to $22.65M. Dinari enables fintechs and digital banks to integrate with its API, allowing users to purchase fractional U.S. stocks via blockchain tokens backed 1:1 by real shares held by Dinari. The firm charges a subscription fee to partners and generates revenue, although exact figures remain undisclosed. With a previously reported valuation of $40M in 2024, Dinari is now focusing on regulatory compliance across its global operations. Dinari positions itself as a modern alternative to traditional depository receipts, aiming to eventually tokenize all publicly traded assets. Demand is highest in Latin America, particularly Argentina and Brazil, with emerging traction in Africa and Southeast Asia. The move reflects a broader trend of reviving tokenized securities, as regulatory attitudes shift and platforms like Coinbase also resume efforts in this space.

The number of deals closed in the previous week was 15, with Infra having 7 deals, representing 47% for each sector of the total number of deals. Meanwhile, Data had 6 (40%) and DeFi had 2 (9%) deals

The total amount of disclosed funding raised in the previous week was $102M, 33% deals (5/15) in previous week didn’t public the raised amount. The top funding came from Infra sector with $77M. Most funded deals: Miden and Camp Network are both $25M

Total weekly fundraising fell to $102M for the 1st week of May-2025, a decrease of -55% compared to the week prior. Weekly fundraising in the previous week was down -37% year over year for the same period.

About Gate Ventures

Gate Ventures, the venture capital arm of Gate.io, is focused on investments in decentralized infrastructure, middleware, and applications that will reshape the world in the Web 3.0 age. Working with industry leaders across the globe, Gate Ventures helps promising teams and startups that possess the ideas and capabilities needed to redefine social and financial interactions.

Website: https://ventures.gate.io/
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