Crypto Venture Funding Rebounds to $5.6 Billion in Q2 2026, Galaxy Research Says

Galaxy Research said crypto venture capital activity recovered in the second quarter of 2026 after a weak first quarter. According to PANews, venture firms invested about $5.6 billion in 384 deals involving private crypto and blockchain companies, up 31% quarter over quarter in funding and 10% in deal count. The report said the increase was driven mainly by later-stage financing. New fund formation remained difficult, with only five new crypto venture funds raising about $3.9 billion in the second quarter, the fewest newly formed funds in a quarter since the fourth quarter of 2019. Based on the pace of investment in the first half of 2026, full-year funding is projected at about $20.037 billion. That would be slightly below the $20.3 billion recorded in 2025, but above most of the market downturn period in 2023 and 2024. Later-stage deals accounted for about 77% of invested capital, while early-stage deals made up 15% and seed and pre-seed rounds accounted for the remaining 7%. U.S.-based startups received 73.5% of total funding and represented 39.1% of the 384 deals. Trading, exchange, investment, and lending companies led all sectors with about $3.523 billion across 51 deals.