Galaxy Research: In the second quarter, total cryptocurrency VC investment rose to 5.6 billion USD, a quarter-on-quarter increase of 31%

Galaxy Research's latest report shows that after a cooling period in the first quarter, cryptocurrency venture capital activity rebounded in the second quarter of 2026. Venture capital firms invested approximately $5.6 billion in unlisted cryptocurrency and blockchain-related companies, involving 384 transactions. The total investment amount increased by 31% quarter-on-quarter, and the number of transactions grew by 10%, with the funding growth mainly driven by later-stage financing.

Raising new funds remains challenging, with only 5 new cryptocurrency venture capital funds raising about $3.9 billion in the second quarter, marking the lowest number of newly established funds since the fourth quarter of 2019. Based on the investment pace in the first half of 2026, the total annual investment is estimated to be around $20.037 billion; this figure is slightly lower than the $20.3 billion for the entire year of 2025 but higher than most periods during the market downturn from 2023 to 2024.

In terms of investment fund allocation, later-stage transactions accounted for about 77% of the share, early-stage transactions accounted for 15%, while seed and pre-seed transactions made up the remaining 7%. Startups based in the United States received 73.5% of the investment funds and accounted for 39.1% of all 384 transactions. Transaction, exchange, investment, and lending companies led with approximately $3.523 billion, comprising a total of 51 transactions.