Crypto Venture Capital Hits Five-Year Low in May

BlockBeats News, June 4th, the monthly venture capital (VC) funding in the crypto industry dropped to around 50 deals in May, hitting a new low since the pre-2021 bull market period. Back then, the overall size of the crypto industry was far smaller than it is today.

From the chart, the contraction in transaction volume is evident across almost all sub-sectors. Among them, the two historically most active tracks—infrastructure and crypto financial services—are currently hovering near multi-year lows.

This trend reflects the combined effect of multiple factors. On the one hand, investors' focus is gradually shifting towards artificial intelligence (AI), leading to a continuous outflow of funds and market attention from crypto startups. On the other hand, compared to the cycles of 2021 and 2024, the crypto industry has not been able to consistently generate enough attractive early-stage projects in recent years, making venture capital firms increasingly cautious in their investments.