Venture Capital Cooling Across All Crypto Sectors
The monthly count of crypto venture deals has dropped by 60% over the past five months, with only 116 private deals tracked in February, marking one of the lowest points in recent years. This is a steep decline from the 300+ deals recorded in October 2024.
Despite the reduced number of deals, total investment value remains stable at around $1 billion per month, showing that investors are being more selective rather than pulling out entirely.
Binance’s $2 Billion Abu Dhabi Deal Stands Out
March saw a notable outlier—Binance secured a $2 billion investment from Abu Dhabi’s MGX, marking Binance’s first-ever institutional investment. The deal aims to advance AI, blockchain, and financial innovation, and was settled in stablecoins rather than traditional currency.
This large-scale deal contrasts with the broader slowdown, where traditional venture investments are shifting toward more structured funding models.
New Investment Models Emerging
While traditional venture capital activity is cooling, alternative funding approaches are gaining traction. Coinbase Ventures recently launched a Base-focused investment group on Echo, a crowdfunded investment platform that enables retail investors to pool resources for early-stage Web3 projects.
With infrastructure, DeFi, Web3, and NFTs all experiencing declining investment activity, the market appears to be entering a maturation phase, where sustainable business models take precedence over speculative investments.
