Crypto Venture Investments Surge 31% Quarter-over-Quarter: New Fund Count Hits Lowest Level Since Late 2019

Investments in crypto startups surged 31% quarter-over-quarter to $5.6 billion in the second quarter of 2026.

According to an analysis by Galaxy Research using PitchBook data, crypto and blockchain startups secured $5.6 billion across 384 funding rounds in the second quarter of the year. The capital amount increased by 31% compared to the previous quarter, while the number of deals rose by 10%.

The recovery was primarily concentrated in late-stage startups, which accounted for 78.3% of total investments during the quarter. If the first-half momentum continues, total investment for the full year of 2026 is estimated to reach approximately $20.04 billion.

Financial Crypto Companies Remained the Investment Focus

By category, trading, exchange, investment, and lending companies attracted the most capital. The total amount allocated to startups in this group reached approximately $3.52 billion. US-based companies received 73.5% of the capital invested during the quarter.

While capital flows recovered, the same activity was not reflected in new fund formation. In the second quarter, only five new crypto venture funds raised a total of approximately $3.9 billion. In terms of the number of new funds, this represents the lowest quarterly level recorded since the fourth quarter of 2019.