Crypto, Blockchain Startup Funding drops to $6.5bn in Q2

According to a new report by the market intelligence platform CB Insights, VC funding for blockchain and cryptocurrency startups fell 29 percent to $6.5 billion in Q2 2022. The so-called "crypto winter” is the primary factor responsible for the drop in funding.

Funding declined for the first time in two years, however, even with that 29 percent decrease, total deal value for the quarter was the fourth-largest for blockchain and cryptocurrency startups.

Venture capitalists led investor deal participation in the second quarter, with funding gradually shifting away from centralized cryptocurrency exchanges and wallets toward NFTs, gaming, DeFi and decentralized applications (DApp).

The “crypto winter”, that followed the BTC drop below the key psychological level of $20,000 in June, wiped out $2 trillion from the sector’s total market capitalization, causing it to drop below $1 trillion.