In July 2026, only 150 unique venture capital firms took part in cryptocurrency funding rounds, marking the lowest level of VC activity since November 2020, according to CryptoRank data. This dip highlights a shrinking appetite among investors for new crypto projects amid ongoing market uncertainties.
The slowdown comes at a time when regulatory debates continue, with the Senate postponing key crypto legislation, creating additional hesitation among institutional backers. The fluctuating interest reflects the cautious approach VCs are now adopting compared to previous more aggressive phases in crypto funding.
