The crypto-based venture capital market has witnessed a sheer decline over the past month. In this respect, the crypto venture capital (VC) funding has dropped by a staggering 75% in a year in April 2026. As per the data from CryptoRank, this denotes the bottom level in comparison with the performance in the past year. So, this collapse highlights a wider risk-off sentiment among crypto investors.
Crypto VC Funding Records 75% Drop, Collection Drops from March’s $2.6B to $660M
Based on the market data, the crypto venture capital (VC) funding has dipped by up to 75% over a year. Thus, this sector recorded the collection of just $660M across sixty-two deals in April. On the other hand, March saw 84 rounds that collected nearly $2.6B. Such a notable contraction presents the rising uncertainty within the digital asset world, where fund inflows had formerly presented resilience irrespective of macroeconomic and regulatory headwinds. Keeping this in view, the downturn indicates the lowest 1-month total since the start of 2025.
Investor Sentiment Undergoes Sharp Reversal Since Peak in October
Specifically, the contraction is noteworthy in comparison with October 2025, when the startups secured almost $3.85B across over 120 rounds, underscoring a staggering sentiment reversal. As a result, the venture capitalists are reportedly reexamining risk exposure amid the consistent market volatility. Overall, according to CryptoRank, while Ethereum and Bitcoin are going through increased price swings, investors seem reluctant to invest big sums into new projects.
