Crypto Investors Shift Focus to Infrastructure Amid Liquidity Concerns

A recent survey indicates a shift in capital priorities among senior crypto investors and executives, moving away from decentralized finance (DeFi) towards core infrastructure. According to Cointelegraph, this change is driven by liquidity constraints and market plumbing challenges. The survey, conducted by the digital asset conference CfC St. Moritz, gathered insights from 242 attendees, including institutional investors, founders, C-suite executives, regulators, and family office representatives. The survey revealed that 85% of respondents prioritized infrastructure funding over DeFi, compliance, cybersecurity, and user experience. Despite positive expectations for revenue growth and innovation, liquidity shortages were identified as the industry's most pressing risk. This suggests that while investor interest persists, capital deployment is becoming more selective. Respondents highlighted market depth and settlement capacity as significant barriers preventing larger institutional capital from entering crypto markets. Approximately 84% of participants viewed the macroeconomic environment as favorable for crypto growth, yet many noted that existing market infrastructure is inadequate for large-scale capitalization. The survey also indicated a shift in innovation expectations, with a majority anticipating accelerated innovation by 2026. However, fewer respondents expect a sharp increase compared to the previous year, reflecting a move from speculative expectations to execution-focused development. This trend aligns with the industry's broader focus on custody, clearing, stablecoin infrastructure, and tokenization frameworks, rather than consumer-facing applications. Additionally, the survey highlighted an improvement in perceptions of the U.S. regulatory environment, ranking it as the second-most favorable jurisdiction for digital assets, following the United Arab Emirates. CfC St. Moritz attributed this shift to stablecoin legislation and clearer rules for banks and regulated market participants. Meanwhile, expectations for crypto initial public offerings have cooled after a record year in 2025. While most respondents still anticipate continued listings, fewer expressed high confidence, citing valuation resets and liquidity constraints.