Crypto Startups See Near-$5 Billion in Funding During Q1 2026

Crypto startups raised nearly $5 billion in funding during the first quarter of 2026, according to data from DefiLlama. This represents a 16% year-on-year decrease, indicating a slowdown in investment activity within the sector.

However, amidst this decline, prediction markets have emerged as one of the biggest winners, attracting over $1.7 billion in investments during Q1. This influx of capital is part of a broader trend towards practical sectors such as payments and trading infrastructure.