Crypto VC Funding Falls to $659M in April, Lowest Since 2024
In April, crypto VC funding fell to $659 million across 63 deals, representing a 74% decrease from March, which returns monthly flows to 2024 lows, despite DeFi and AI still drawing investment.
Summary
- According to Cointelegraph, crypto venture funding dropped to $659 million over 63 deals in April, a significant decline from $2.6 billion and 84 rounds in March.
- After peaking at $3.84 billion in October 2025, monthly crypto VC flows have decreased, though year-to-date funding for 2026 is still approximately $5.64 billion.
- DeFi was the leading sector with 12 deals, while blockchain services and AI-related crypto projects each had 8 rounds; market maker GSR’s VC arm was the most active investor, followed closely by Tether, Animoca Brands, and Coinbase Ventures.
The crypto venture market faced a challenging month in April, with Cointelegraph noting that sector startups managed to secure only $659 million across 63 funding rounds.
April’s funding decline reverts crypto VC to 2024 figures
This represents a 74% decline from March’s approximately $2.6 billion and 84 deals, pulling monthly volumes back to their lowest point since 2024 and highlighting a swift cooling in risk appetite after an initial wave of optimism in early 2026.
As of Cointelegraph’s assessment, total crypto VC financing for 2026 currently stands around $5.64 billion, still considerable but significantly lower than the average implied by the local peak in October 2025, when funding hit around $3.84 billion in a single month.
From October 2025 peak to gradual reset
Since the high in October 2025, monthly funding amounts have been consistently declining alongside token prices.
Industry sources referenced by Cointelegraph indicate a roughly 37% drop in global crypto market capitalization during the same timeframe, compressing valuations and impacting many late-stage investors with mark-downs.
February served as an early warning: Phemex recorded about $866 million from 62 deals, a 46% decline from January, with DeFi and AI projects still managing to attract capital, albeit in smaller amounts.
The $659 million figure for April indicates that the slowdown has evolved into a full-scale reset, with a reduction in large growth-stage rounds and a higher threshold for new token launches, as data reveals about 85% of 2025 issues are trading below their initial prices.
Where the investment is still flowing—and who is making it
Despite a quieter month, certain areas remained active.
DeFi protocols led with 12 deals, followed by 8 for blockchain infrastructure and services as well as another 8 for AI-related crypto projects, indicating ongoing interest in both fundamental financial primitives and tools for the emerging “agent” economy.
On the investor side, Cointelegraph’s overview highlights the venture arm of market maker GSR as the leading investor in April, taking part in four separate fundraising efforts aimed at trading infrastructure and liquidity solutions.
Prominent players such as Tether, Animoca, and Coinbase Ventures also participated, each in three deals, usually focusing on smaller, earlier-stage rounds rather than the nine‑figure checks typical of the previous cycle’s peak.
For founders, the takeaway is clear: while capital remains accessible, investors are markedly more selective and price-sensitive, emphasizing products that can thrive in tighter market conditions and provide real utility rather than relying solely on narrative-driven hype.
For the wider market, a decelerated VC flow typically results in fewer new tokens entering exchanges, along with increased scrutiny on whether existing projects can fulfill their roadmaps without the support of another influx of easy capital.