Crypto startups are experiencing a drastic decline in fundraising calls

The crypto startup sector is experiencing a major contraction. According to February data reported by PANews, the total sector funding reached $883 million, reflecting current tensions in the venture capital market.

A Sharp Drop in Venture Capital Funding

The figures reveal a historic decline in funding activity. The number of venture capital deals has plummeted to a level unseen in 5.5 years, while invested amounts have decreased by nearly 80% compared to the peaks reached in 2022. This contraction indicates increased selectivity among investors, who are now focusing their resources on sectors deemed a priority.

Investors Refocus on Specific Segments

In response to this widespread decline, venture capital strategies are shifting significantly. Funds are now favoring projects related to stablecoin infrastructure, asset custody solutions, and regulatory compliance tools. This concentration reflects a profound change in crypto funders’ priorities, moving away from pure growth approaches toward stability and profitability.

2025 Tokens Show Limits of the Speculative Cycle

A revealing indicator confirms this shift: 85% of tokens launched this year are currently trading below their opening price. This phenomenon, symptomatic of declining retail investor confidence, marks a transition from a speculative paradigm to models centered on fundamentals and revenue. The crypto market thus appears to be entering a cleansing phase where only projects offering real economic value will survive.