Galaxy Research reports a steep drop in crypto venture capital activity as investors pivot toward direct digital asset accumulation and treasury strategies.
Although digital assets continue to attract record interest from institutional investors, traditional banks and corporations, venture capital activity in the sector has slowed notably since the first quarter.
Galaxy Research’s latest VC report showed that crypto and blockchain startups raised a total of $1.97 billion across 378 deals in the second quarter. That represents a 59% decline in funding and a 15% drop in deal count compared to the previous quarter. According to Galaxy, it was the second-lowest quarterly total since Q4 2020.
Researchers observed that the long-term correlation between Bitcoin’s (BTC) price and venture capital investment in the sector has broken down and is “struggling to recover.”
