Crypto VC deal count hits 5-year low

The number of venture capital (VC) deals in the cryptocurrency industry fell to around 50 in May, dropping to levels not seen since before 2021, The Block reported. Deal counts in most sectors, including infrastructure and crypto financial services, reached multi-year lows, a decline primarily attributed to a shift in investor focus toward the AI sector. Despite the drop in deal volume, the total investment amount has remained relatively high, with funds concentrating on promising projects like prediction market platform Kalshi, which recently secured a $1 billion investment. The Block's analysis concludes that the market is undergoing a selective reorganization rather than a contraction, as VCs become more cautious while projects with tangible utility continue to attract large-scale funding.