Crypto VC funding fell to $659 million across 63 trades in April, a 74% decline from March, dragging monthly flows to 2024 lows even as DeFi and AI continue to attract capital.
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- Cointelegraph data shows that cryptocurrency project funding fell to $659 million across 63 deals in April, down 74% from $2.6 billion and 84 rounds in March.
- Since peaking at $3.84 billion in October 2025, monthly venture capital inflows have trended downward even as total funding for 2026 so far stands at about $5.64 billion.
- DeFi led the sector activity with 12 deals, while blockchain services and AI-related crypto projects each saw 8 rounds; The venture capital arm of market maker GSR was the most active investor, with Tether, Animoca Brands and Coinbase Ventures close behind in second place.
The cryptocurrency projects market hit the open air in April, with Cointelegraph Startups in this sector have reportedly raised just $659 million across 63 funding rounds.
April’s funding cliff takes cryptocurrencies back to 2024 levels
This represents a 74% month-on-month decline from March’s roughly $2.6 billion and 84 trades, bringing monthly volumes back to their lowest level since 2024 and underscoring how quickly risk appetite is slowing after a wave of optimism in early 2026.
According to a Cointelegraph calculation, total crypto VC funding so far in 2026 is about $5.64 billion, which is still significant but well below the run rate indicated by the local peak in October 2025, when funding reached about $3.84 billion in one month.
From the peak in October 2025 to the slow-motion reset
Since the October 2025 high, monthly funding volumes have declined in parallel with token prices.
Industry trackers cited by Cointelegraph say the global market capitalization of cryptocurrencies fell by roughly 37% over the same period, compressing valuations and leaving many late-stage investors reeling from falling prices.
February has already provided a warning shot: Phemex recorded about $866 million raised across 62 trades that month, down 46% from January, with DeFi and AI projects continuing to attract capital but with smaller ticket sizes.
April’s figure of $659 million suggests the slowdown has now deepened into a full reset, with fewer large growth phase rounds and a higher bar for new token launches after data showed nearly 85% of 2025 issues trading below their issue price.
Where does the money still go, and who writes the checks?
Even in the quietest month, some pockets of activity emerged.
DeFi protocols topped 12 deals, followed by 8 deals for blockchain infrastructure and services and another 8 for AI-related cryptocurrency projects, reflecting continued interest in both basic financial primitives and tools for the emerging “agent” economy.
On the investor side, Cointelegraph’s collapse shines a spotlight on the market maker’s investment arm GSR As the most active supporter for the month of April, it participated in four separate increases covering trading infrastructure and liquidity instruments.
Heavy weights such as pregnancy, Animocaand Coinbase Ventures have also remained present, each joining three deals, often in smaller, early-stage rounds rather than the nine-figure growth caps that defined the peak of the last round.
For founders, the message is clear: capital is still available, but investors are more selective and price-sensitive, focusing on products that can withstand leaner market conditions and link directly to real usage rather than purely trading.
For the broader market, a slower pipeline of venture capital means fewer new tokens hitting exchanges — and more scrutiny over whether existing projects can execute their roadmaps without relying on another wave of easy money.
