According to ChainCatcher, citing The Block, the monthly number of cryptocurrency venture capital deals has dropped to approximately 50, the lowest level since before 2021. Both historically active sectors—infrastructure and crypto financial services—have reached multi-year lows. The primary reasons for this decline in deal volume are a significant shift in investor focus toward the AI sector and a shortage of high-quality early-stage projects. Despite the drop in deal count, total funding amounts remain relatively high, reflecting a “fewer but larger” trend—recently exemplified by the prediction market platform Kalshi, which raised $1 billion. Analysts note that the current low-noise environment presents a window of opportunity for projects with clear use cases and genuine traction. Whether a recovery emerges in the second half of 2026 will depend on whether new sectors beyond prediction markets and financial infrastructure can generate a broad-based investment consensus.
Crypto VC monthly deals fall to five-year low as capital concentrates on top projects
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Summary
Monthly crypto VC deals have dropped to a five-year low, with activity falling to around 50 per month, according to The Block. Infrastructure and crypto financial services—once hot sectors—are also experiencing multi-year lows. Investor focus has shifted to AI, and early-stage projects are scarce. Despite fewer deals, fundraising remains robust, with large rounds such as Kalshi’s $1 billion financing. Analysts say the subdued market could favor altcoins with genuine traction. A 2026 recovery may depend on leading altcoins and emerging investment trends.
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