The monthly number of crypto venture capital deals has fallen to its lowest level in five years

Odaily Odaily reports that the monthly number of crypto venture capital deals in May was approximately 50, the lowest level since before 2021. The two historically most active categories, infrastructure and crypto financial services, are both near multi-year lows. Investor attention has structurally shifted towards AI, while the crypto sector has failed to generate early-stage opportunities on the scale seen in the 2021 and 2024 cycles.

Although the number of deals has slowed, total funding has not dropped significantly in tandem, indicating that the market is consolidating rather than undergoing a full contraction. For developers, the current environment is far less competitive than previous boom periods, and projects that can demonstrate clear utility and growth momentum face the least competition in recent years. Whether the number of deals rebounds in the second half of the year will depend on whether new tracks beyond prediction markets and financial infrastructure can inspire investor confidence. (The Block)