A new report on VC funding in the crypto space provides an interesting conclusion. The sector is undergoing deep integration, allowing more projects to receive significantly more capital.
Sectors such as Defi, AI and blockchain are attracting a lot of interest, while RWAS, Depin, NFTS and GameFi are falling on the roadside. It may be the only way to receive a fresh influx to suit the tastes of the major players.
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Crypto VC funding analyzed
A few months ago, VC funding in the crypto space was in full swing, maintaining a $10 billion inflow in the second quarter alone. However, the sector appears to be somewhat cooled as token launches have started to take precedent over traditional VC routes.
The new report is intended to fully quantify the data and identify useful trends. Throughout September 2025, Crypto VC’s funding round fell dramatically at several points. Compared to the previous month, the total number of rounds fell 25.3%, which expanded to 37.4% in September 2024.
In other words, the number of funding rounds isn’t just diminished. The rate of decrease is increasing at the rate of decline.
However, this data is slightly misleading. The number of different VC funding events in the crypto fell like a rock, but more capital is involved. Looking at the raw value of total funding, last month saw an increase of 739.7% year-on-year.
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Integrated Market
In total, this accounts for approximately $5.1 billion of the total VC funding capital in the crypto sector. As well-known companies aim to be a major IPO, these aggressive rounds are bulging in size and declining in total.
Last month, multiple single funding rounds surpassed the total capital raised in September 2024.
In light of this trend, it is very important to discover which sectors are attracting the most attention.
Cefi and Defi are, of course, the largest regions, almost representing half of the total investment capital between them. AI development and the L1/L2 blockchain are tied to third place behind it, with tools and wallets narrowly lagging behind.
While the RWA market is often traded with stock tokenization hype, data suggests that VC funding ignores this crypto subsector. A recent report shows that these assets have been significantly degraded, achieving only 6.5% market share when bundled with Depin last month.
In other words, large institutional investors such as Goldman Sachs, Pantera Capital and Galaxy Digital dominate this VC funding ecosystem and can elaborate on crypto interests.
This integrated environment can pose major challenges for small projects, but there are also real opportunities.
