TechFlow News, May 2nd: According to a Cointelegraph report, CryptoRank data shows that venture capital (VC) funding in the cryptocurrency sector fell to $659 million across 63 funding rounds in April—down 74% from $2.6 billion across 84 rounds in March—and marking the lowest monthly total since July 2024. Year-to-date funding in 2026 stands at $5.64 billion.
VC funding in the crypto space has been declining continuously since October 2025, when it stood at $3.84 billion across 127 rounds. According to CoinGlass data, the global crypto market’s total market capitalization has declined by 37% since last October. By sector, DeFi protocols attracted the most deals in April, completing 12 funding rounds; blockchain infrastructure services and AI-related crypto projects tied for second place, each with eight rounds.
The most active investor was GSR Ventures—the venture arm of crypto market maker GSR—which participated in four funding rounds in April: a $3.5 million seed round for DeFi protocol Legend Trade; a $4 million seed round for DeFi protocol 3F; a $1 million pre-seed round for Enhanced Finance; and an undisclosed investment in RWA tokenization protocol Libeara. Zurich-based digital asset investment firm L1 Digital (L1D) ranked second with three investments. Y Combinator, Tether, Animoca Brands, Landscape Capital, Coinbase Ventures, and Kosmos Ventures each also participated in three deals.
