The number of crypto venture-capital deals fell to approximately 50 in May 2024, marking the lowest level since before 2021 [1].
This slump indicates a significant shift in investor appetite. As funding contracts, venture firms are moving away from broad speculation and toward a more selective approach to choosing which startups receive capital.
The decline in activity follows a period of sharp contraction in available funding. In April, crypto venture funding plunged to $659 million across 63 rounds [2]. This represents a 74% drop from the $2.6 billion invested during the same month in the previous year [2].
Earlier this year, the trend of diminishing returns continued into the first quarter. Total crypto venture funding for Q1 2026 reached $4 billion [3]. This figure represents a 50% fall from the prior quarter [3].
Beyond the total amount of capital deployed, the infrastructure of the investment landscape is shrinking. The first quarter of 2026 saw the fewest new crypto venture capital funds established since 2020 [3].
Despite the drop in the total number of deals, some capital continues to flow into the market. Larger, billion-dollar rounds have helped maintain a baseline of liquidity even as the volume of smaller startup deals disappears [1].
“The number of crypto venture-capital deals fell to approximately 50 in May 2024.”
The combination of a multi-year low in deal counts and a sharp decline in new fund creation suggests a systemic cooling of the crypto investment cycle. While massive funding rounds prevent a total freeze, the collapse in early-stage deal flow indicates that investors are no longer willing to bet on high-risk, unproven projects, favoring established players instead.
