CryptoRank data showed that only 150 venture capital firms participated in crypto funding rounds in July, the lowest monthly total since November 2020. According to PANews, that figure is down about 87% from the peak of 1,177 firms in May 2022.

Smaller funds, family offices and angel syndicates have mostly withdrawn, leaving a small number of established firms to lead deals. Quarterly data showed the same trend, with about 651 institutions participating in crypto funding in the second quarter, down about 75% from 2,564 in the second quarter of 2022.

The decline in active institutions does not necessarily mean less capital, as large funds continue to back infrastructure and RWA projects. Dragonfly also completed its fourth fund of $650 million in February.