Venture funding in the crypto sector has slowed significantly in 2026, following a peak in late 2025.

Data shows monthly fundraising reached around $3.84 billion in October 2025, before trending lower into the new year. By April 2026, total capital raised had dropped to roughly $662m, with early May figures showing minimal activity.

At the same time, the number of funding rounds has fallen more sharply than total capital, indicating fewer deals rather than a complete withdrawal of investment.

Fewer deals point to a more selective market

The divergence between capital deployed and deal count suggests a shift in investor behaviour.

Rather than backing a broad range of projects, venture firms appear to be focusing on fewer opportunities…