CryptoRank just dropped some data showing that crypto venture capital (VC) activity is at its lowest point since November 2020. In July 2026, only 150 unique VC firms were getting in on funding rounds, which is a massive slide from the 1,177 active investors we saw back in May 2022.
But even though the number of firms has totally shrunk, the money hasn’t dried up. July still saw about $1.48 billion across 37 rounds, actually edging out June’s $1.44 billion. It looks like fewer players are just writing much bigger checks.
The concentration trend: Fewer firms, bigger cheques
We are seeing a real shift here: fewer VCs are getting involved, but they are putting up bigger amounts of cash. July 2026 saw just 150 unique firms jump into funding rounds, a big drop from the 244 in June and 452 back in October 2025. Even with fewer players, the money is still flowing: we saw about $1.48 billion across 37 rounds in July, actually beating June’s $1.44 billion.
Basically, a smaller group of players is putting way more chips on the table for their top picks. It’s all about doubling down on their best bets right now. Coinbase Ventures has been leading the charge in the first half of 2026 with 30 investments, with Animoca Brands, a16z, and Tether right there in the mix too.
Why VCs are pulling back
The pullback is happening for a few big reasons. First off, tough regulations in the U.S. are making it super tricky to launch new tokens without hitting legal landmines, which has forced many VCs to hit the pause button on early-stage projects.
Then there’s the artificial intelligence (AI) boom. Risk capital is shifting toward AI because, at the moment, it offers much quicker results and immediate productivity gains, leaving crypto to fight for a smaller slice of the pie.
The days of banking millions on just a whitepaper are long gone. Now, VCs are really doubling down on projects that actually have users, real transaction numbers, and a solid business plan. Plus, with trading platform fees down, relying on those for an easy exit just isn’t cutting it anymore.
A closer look at July’s active investments
Even with fewer investors jumping into the scene, July 2026 still saw some pretty big funding rounds. Gauntlet snagged $125 million from SBI Holdings, their biggest funding boost since they started back in 2018.
EDX Markets raised $76 million in a Series C round, also led by SBI Holdings, to expand internationally. Velocity secured $38 million in a Series A round led by Dragonfly Capital and FirstMark for stablecoin treasury management.
Cyclops raised $20 million for a stablecoin payment Application Programming Interface (API), while Savior of Health secured $4 million from Amber Group and Animoca Brands for AI-driven health infrastructure.
Bottom line: even if fewer VCs are playing the game, big money is still pouring into projects that add value and solve real problems/necesities.
