In the first half of 2026, there were 259 crypto funding rounds and 8B&A deals—where did the over $8 billion flow?

The data for 2026 H1 crypto primary-market funding has been released. According to RootData, total funding in the crypto industry in the first half of the year amounted to $9.081B, across 259 funding events; of this, funding in the primary market (excluding IPO, Post IPO, and M&A rounds) totaled $8.658B. This figure represents a 26.1% year-over-year decline versus the same period in 2025, and the number of funding events decreased by 28.5% year over year. Meanwhile, 75 M&A deals were completed, of which 16 disclosed specific amounts, totaling approximately $3.836B. Funding amount falling, deal counts contracting, and M&A activity heating up are all happening at the same time—behind this seemingly contradictory set of data lies a profound structural reshaping taking place in the crypto primary market.

Primary-market funding scale down by nearly a third year over year—does the cooling mean winter continues

The total primary-market funding amount of $8.658B in the first half of the year was down 26.1% from the same period last year. While this decline is significant, when observed over a longer time horizon, the market has not fallen into a frozen state. In 2026 H1, overall capital inflows into the crypto market (including all rounds) reached $13.3B, nearly matching the $13.2B recorded for all of 2024. Capital is still flowing in, but the pace and direction have changed markedly. The number of funding events fell 28.5% year over year, a slightly larger drop than the amount; this implies that the average size of each funding round has increased—capital is concentrating into fewer, more mature projects rather than broadly casting a wide net. This is in sharp contrast to the “spray and pray” strategy commonly adopted by venture capital institutions during the 2021 bull-market cycle.

Two spikes in March and May—what do the monthly funding rhythms signal

Judging by the monthly distribution, March and May are the two peaks for funding amounts in the first half, with the number of funding events reaching 66 and 68, respectively. The emergence of these two peaks is directly tied to the concentrated disclosure of several large financings and M&A deals. After June, the number of funding events fell back to 43, showing that market capital activity cooled toward the end of the second quarter. Overall, large financings can still significantly boost monthly funding totals, but the heat of typical funding rounds has started to contract. This trend suggests: primary-market funding activity has not disappeared, but the force supporting funding scale is shifting from “quantity-driven” to “single-deal size-driven.”

DeFi, infrastructure, and CeFi—what exactly is the capital buying?

In terms of track distribution, DeFi, infrastructure, and CeFi are the three most active directions for funding in 2026 H1. Specifically, DeFi completed 129 funding events, infrastructure completed 116, and CeFi completed 69. DeFi surpasses CeFi in the number of funding events, reflecting capital’s continued commitment to the fundamental infrastructure of on-chain finance—stablecoin protocols, liquidity mechanisms, yield strategies, and on-chain trading tools remain the directions for dense capital allocation.

Beyond the three main lines, AI, payments, prediction markets, and RWA (real-world assets) are also key sub-sectors that capital focuses on. There were 59 AI-related funding events, 46 payment-related projects, and 28 RWA-related projects. The combination of AI and crypto is moving from concept into practical application layers, while the number of RWA funding events is relatively fewer; however, the underlying logic—bringing traditional financial assets onto the chain—represents a structural channel through which institutional capital is entering the crypto market.

75 M&A deals, with CeFi as the main battlefield—what does the wave of integration mean?

In the first half of 2026, the crypto industry completed 75 M&A deals, including 16 deals that disclosed specific amounts, totaling approximately $3.836B. M&A is mainly concentrated in CeFi, tools and information services, DeFi, and infrastructure. Representative events include: Mastercard acquiring BVNK ($1.8B) and Kraken acquiring Reap ($600M), among others.

The concentrated surge in M&A deals reveals an important signal: amid the contraction of liquidity in the secondary market and token prices under pressure, traditional financial institutions and leading crypto enterprises are acquiring compliance licenses, user bases, and mature technical teams through acquisitions. CeFi becoming the main battleground for M&A is not accidental—centralized financial services involve heavily regulated assets such as payment licenses, bank partnerships, and fiat on/off-ramps, and obtaining ready-made compliant infrastructure via M&A is far more efficient than building from scratch. With M&A heating up while primary funding cools at the same time, it shows that capital allocation in the crypto industry is shifting from “venture-capital-driven incubation of new projects” to “industry consolidation driven by strategic acquisitions.”

Top-tier institutions adding firepower against the tide—mid-and-small VCs accelerate the clearing-out

Although the overall funding environment is cooling, leading crypto venture capital institutions are still maintaining a high frequency of investments. In 2026 H1, Coinbase Ventures participated in 25 investments, ranking first in the industry; Animoca Brands participated in 20, while a16z and Tether each participated in 14. Over the past 12 months, Coinbase Ventures has participated in 68 investments in total, continuing to hold the top position in the industry. The sustained activity of these top institutions reflects that exchange-linked VCs, stablecoin issuers, and major crypto-native funds are allocating capital across the cycle.

Meanwhile, mid-sized venture capital institutions without clear competitive advantages are being rapidly eliminated. In 2026 H1, there were only 435 funding rounds, down sharply by 78% from the peak of 1,978 rounds in 2022. Institutions that previously built broad investment portfolios by rapidly monetizing tokens in the prior bull cycle saw their transaction volume decline by as much as 98.9%, with their influence basically reduced to zero. Capital is moving from “casting a broad net” to “precision targeting”—only teams that can clearly demonstrate infrastructure value, distribution advantages, or regulatory relevance can secure funding.

Starting from $8.658B—where will the investment hotspots go in the second half?

Based on the funding structure in the first half, several projections can be made for the second half. First, CeFi field M&A and integration are likely to continue. The $3.836B M&A amount comes only from 16 disclosed transactions; M&A deals with undisclosed amounts imply that the actual integration scale could be larger. The window for traditional financial institutions to enter the crypto space via M&A has not yet closed. Second, the financing heat for AI + Crypto and RWA is expected to persist. In the first half of the year, there were 59 AI-related fundraisings and 28 RWA-related ones; the shared characteristic of these two directions is “bringing external value into the crypto ecosystem”—AI brings compute power and data value, while RWA brings traditional financial assets. They do not rely on internal liquidity cycles within crypto markets, and therefore have stronger anti-cyclical attributes. Third, the number of funding rounds may continue to contract, but the size of individual funding rounds will remain high. Once the trend of capital concentrating on top projects and mature tracks takes shape, it is difficult to reverse in the short term.

Summary

The 2026 H1 crypto primary-market funding data—$8.658B across 259 events—conveys the core message that this is not simply “the market getting cold,” but “the market is changing.” The funding amount fell 26.1% year over year, but the total capital inflow has already matched full-year 2024; the number of funding events dropped significantly, but the quality of single rounds is improving. Primary-market funding is cooling, yet M&A deals are accelerating integration at a scale of 75 deals and $3.836B. The track landscape where DeFi, infrastructure, and CeFi are “three-way equals” is already clear, and AI, payments, and RWA are becoming new coordinates for capital deployment. For market participants, understanding the structural changes behind this set of data is more valuable than focusing on whether the numbers go up or down.

FAQ

Q1: What was the total crypto primary-market funding amount in 2026 H1?

$8.658B (excluding IPO, Post IPO, and M&A rounds). If all rounds are included, total funding amounted to $9.081B.

Q2: Compared with the same period last year, how did the funding scale change?

Funding amount declined 26.1% year over year, and the number of funding events declined 28.5% year over year.

Q3: Which tracks received the most funding?

DeFi (129 events), infrastructure (116 events), and CeFi (69 events) are the three most active tracks. AI (59 events), payments (46 events), and RWA (28 events) are the sub-sectors that received the most focus.

Q4: How did M&A activity look in the first half of the year?

A total of 75 M&A deals were completed, including 16 deals that disclosed specific amounts, totaling approximately $3.836B. M&A mainly concentrated in CeFi, tools and information services, DeFi, and infrastructure.

Q5: How did top venture capital institutions perform?

Coinbase Ventures ranked first with 25 investments; Animoca Brands participated in 20, while a16z and Tether each participated in 14.

Q6: How might the funding trend in the second half evolve?

M&A integration in the CeFi space is expected to continue, the financing heat for AI + Crypto and RWA is expected to persist, and while the number of funding rounds may continue to contract, the size of individual funding rounds will remain high.