Venture investments in crypto projects have dropped sharply. In April, the funding volume was $659 million, making it one of the weakest figures in almost two years. This is four times less than the March level.
The decline was steep. In March, projects attracted about $2.6 billion, but just a month later, investor activity dropped significantly.
Funding Returns to 2024 Levels
April was the weakest month since July 2024. At that time, the market attracted $622 million, which is comparable to current values.
The number of deals also decreased. In April, there were 63 rounds compared to 84 in March, confirming a decline in activity not only by amount but also by the number of investments.
Since the beginning of the year, total investments have reached $5.64 billion. However, the trend indicates a slowdown compared to the end of 2025.
The Drop Started Back in the Fall
The current correction does not seem random. The volume of venture investments has been declining since October 2025, when the market attracted $3.84 billion.
Since then, the situation has changed. The total market capitalization has decreased by about 37%, which has affected project valuations and investor interest. In such conditions, funds have become more cautious. Deals are less frequent, and requirements for projects are stricter.
Macroeconomic Factors Increase Investor Caution
The market is pressured not only by internal dynamics. High interest rates and a general decline in appetite for risky assets are influencing venture fund decisions.
MEXC exchange head Vugar Usi Zade noted that investors have become more selective. According to him, uncertainty in global markets and high interest rates are forcing funds to reconsider their strategies.
This is changing the structure of investments. Funds are more often choosing projects with clear business models and real sources of income.
DeFi Maintains Investor Interest
Despite the overall decline, certain segments remain active. The largest number of deals in April was in DeFi — 12 rounds.
Next are infrastructure solutions and projects at the intersection of blockchain and artificial intelligence. Each of these categories saw eight deals.
This shows a shift in interest. Investors are betting on technology and core services, not speculative directions.
GSR Was the Most Active Investor of the Month
GSR stood out among the funds. Its venture division participated in four investment rounds over the month.
Among the deals were investments in DeFi projects Legend Trade and 3F, as well as participation in early stages of other protocols. This confirms a focus on core financial infrastructure.
Second place went to L1 Digital with three investments, including infrastructure and exchange projects.
Major Players Remain Active
Despite the market decline, a number of major investors continue to participate in deals. Among them are Tether, Animoca Brands, Coinbase Ventures, and Y Combinator.
Each of them took part in three rounds over the month. This shows that the market has not stopped completely but has moved into a more cautious phase. Investors are not leaving, but are changing their approach. Volumes are decreasing, and requirements for projects are increasing.
The Sector Moves Into a Selection Phase
The decline in funding is changing the rules of the game. With limited capital, projects are forced to compete for the attention of funds.
This intensifies selection. Fewer new projects are entering the market, and existing teams must show results faster. This dynamic is typical for mature market phases. After a period of active growth comes a filtering stage.
What This Means for the Market
Current data indicate a cooling of the venture segment. Investors have become more cautious and reduced investment volumes. At the same time, the market has not stopped. Activity remains in key areas, especially in DeFi and infrastructure.
The decline in funding may clear the market of weak projects. In the long run, this could improve the quality of new launches.
What's Next?
In the short term, the trend depends on the state of the market. If liquidity and interest in risky assets recover, venture investments may start to grow.
If not, the current level may persist. In that case, the market will remain in the selection phase, where capital is distributed more selectively.
The question is how long this period will last. The answer will determine the speed of new project launches and the overall pace of industry development.
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