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Venture capital funding for cryptocurrency projects decreased by 75% in April compared to March, with the total amount reaching $660 million, down from over $2.6 billion the previous month, according to analysts from the CryptoRank platform.
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Analysts believe this decline reflects a broader reduction in the risk appetite among cryptocurrency market participants: investors are becoming more cautious and are less actively investing in new projects amid ongoing volatility.
The shift in sentiment is particularly evident when compared to the peak values of major crypto assets in October 2025. At that time, cryptocurrency projects raised approximately $3.85 billion across more than 120 funding rounds, highlighting the extent of the current downturn. Venture capital firms are reassessing their strategies, favoring more established or infrastructure-focused solutions, analysts explained.
Increased competition for capital is tightening the requirements for startups: the importance of business models, transparency, and the actual utility of products is growing. According to CryptoRank, an additional pressure factor remains the high volatility of key crypto assets, which complicates project evaluations and increases uncertainty in profitability forecasts.
In this environment, venture investors tend to either postpone deals or reduce the amount of their investments, which directly impacts the overall funding levels in the industry, specialists from CryptoRank reported.
Previously, experts from the CEX.IO cryptocurrency exchange indicated through a survey that nearly 36% of cryptocurrency traders admitted to cutting back on daily expenses due to the decline in digital asset prices. One in ten investors acknowledged they were forced to economize in order to avoid reducing their crypto holdings.
