Crypto venture capital markets remained active in July, with startups raising $1.2 billion despite a significant decline in the number of deals, according to CryptoRank data. The total came as deal counts fell to around 25 rounds, signaling that a smaller pool of transactions accounted for the bulk of capital raised. The uneven funding trend was visible throughout 2026: after a strong $2.2 billion and 85 deals in March, monthly totals plunged to $698.2 million in April, surged to $3.89 billion in May, then cooled to $1.44 billion in June.
Coinbase Ventures led investor activity with 33 deals, followed by Animoca Brands (19), a16z crypto (18), and Tether (17). Paradigm, which closed a $1.2 billion fourth fund earlier in July, participated in eight rounds. Sector-wise, exchanges attracted the most capital ($2.5 billion), followed by prediction markets ($1.9 billion), payments ($1.6 billion), and AI projects ($1.3 billion). DeFi secured only $654 million, with quarterly funding falling for three consecutive quarters to its lowest level since late 2023, and deal count plunging to a 2020 low.
In a separate development, the SEC charged Florida resident Zan Shaikh and his firm Mining Automatic with orchestrating a $22 million crypto mining fraud. The regulator alleges that from June 2023 to May 2025, the defendants raised $22 million from over 380 investors by promising guaranteed returns from mining operations, but only about 13% of the funds were put toward actual mining. The rest was allegedly diverted for marketing, recruiting new investors, personal expenses, and unrelated ventures. The SEC seeks injunctions, disgorgement, and civil penalties, highlighting the continuing crackdown on fraudulent crypto investment schemes.
