Nick Tomaino Predicts Crypto VC Decline Amid Ethereum Growth

Nick Tomaino, founder of 1confirmation, asserted on May 11, 2025, that Ethereum’s progress signals a potential decline for crypto venture capitalists, predicting most will become obsolete.

The rise of Ethereum is challenging traditional venture capital roles, shifting focus to decentralized funding models and technology. This transition could impact the landscape for crypto investors and developers.

An influential figure in the crypto space, Nick Tomaino emphasized how Ethereum’s surge may cause a decline in crypto venture capitalism. As Ethereum networks decentralize, many conventional VCs might face obsolescence due to reduced demand.

“The rise of Ethereum means the ‘death of crypto VC.’ 99% of crypto VCs will soon disappear. The only way for long-term development is to be in the right place at the right time, secure institutional capital, lack vision or creativity, and remain aligned with users.” — Nick Tomaino, Founder, 1confirmation

Tomaino, founder of 1confirmation and former Coinbase investor, suggests that crypto VCs need to adapt to Ethereum’s evolving infrastructure. This entails shifting from traditional funding structures to decentralized models like DAOs, driven by blockchain innovation.

The dominance of Ethereum is revolutionizing financial models, prompting investors to reconsider blockchain-based funding. This evolution affects not just investors but also startups in the blockchain space, altering strategic planning.

As Ethereum continues to advance, conventional VC demands wane, compelling a reformulation of investment strategies. The crypto ecosystem recognizes a shift toward on-chain governance and decentralized financial systems, which reshape industry dynamics.

Long-term prospects might entail a greater emphasis on blockchain-based funding mechanisms, potentially diminishing the traditional roles of venture capitalists. Such transformations require strategic foresight within both technological and regulatory domains.