VC Fundraising in Crypto Sector Consolidates Under Corporate Capital Inflows

Core Insights - The crypto VC fundraising sector is experiencing significant consolidation, with fewer projects attracting larger amounts of capital [1][5] - Interest is shifting towards sectors like DeFi, AI, and blockchains, while RWAs, DePIN, NFTs, and GameFi are losing traction [1][6] Fundraising Trends - In Q2, institutional investment led to $10 billion in inflows, but the sector has since cooled, with token launches becoming more prominent than traditional VC routes [2] - In September 2025, the total number of VC fundraising rounds in crypto fell by 25.3% month-over-month and 37.4% year-over-year [3] - Despite the decline in the number of fundraising rounds, the total capital raised saw a 739.7% year-over-year increase, amounting to approximately $5.1 billion [4][5] Sector Performance - CeFi and DeFi accounted for nearly half of the total investment capital, with AI development and L1/L2 blockchains following closely behind [6] - The RWA market is underperforming, capturing only a 6.5% market share when combined with DePIN, indicating a lack of interest from major institutional investors [7]