Crypto venture capital participation has dropped to its lowest level in nearly six years, with only 150 unique VC firms joining funding rounds in July 2026 (as of July 28).

The figure marks a sharp decline from the May 2022 peak of 1,177 active investors, highlighting a market where capital is becoming increasingly concentrated among a smaller group of highly selective funds.

Despite the drop in investor participation, crypto startups are still expected to raise around $1.2 billion in July, suggesting that fewer firms are deploying larger amounts of capital into high-conviction opportunities.

Funding continues to favor sectors such as crypto exchanges, trading infrastructure, AI-powered blockchain projects, and lending protocols, while DeFi investment has declined for the third consecutive quarter, reaching its lowest level since late 2023.

The latest data suggests the crypto VC market is shifting from broad participation toward fewer deals backed by larger checks and stronger conviction.