Active Crypto VC Firms Drop to Lowest Level Since 2020

Crypto venture capital activity has hit a major speed bump. Recent data shows that only 150 unique VC firms took part in crypto funding rounds during July. This marks the lowest monthly count we have seen since November 2020.

This drop highlights how much the investor base has compressed since the last bull run. Back at the market peak in May 2022, a massive 1,177 firms were actively funding crypto projects. The steep decline shows that funding has dried up significantly for early stage builders.

Traders and developers should watch to see if this trend continues through the summer months. While fewer active funds usually mean less capital moving around, it often weeds out weaker projects and leaves room for stronger builders to stand out.