Crypto fundraising in August totaled $1.9 billion, marking a 30% decline from the $2.67 billion raised in July, according to data from DefiLlama.
Even with the slowdown, venture capital activity for the month was fairly consistent with July’s levels, largely supported by PUMP’s $600 million public token sale.
Decentralized finance (DeFi) protocols took the lead in fundraising during August. Some of the standout rounds included $50 million raised by Portal, $40 million secured by M0 in the Series B round, and a $20 million strategic investment into aPriori. Investor interest stayed steady across trading platforms and infrastructure development, showing that institutions remain committed despite overall market volatility.
The third-quarter fundraising has already edged past second-quarter totals. With $4.57 billion raised in only two months, the figure is slightly above the $4.54 billion secured in the entire previous quarter.
DefiLlama’s data also highlights how the industry has shifted compared to early 2022, when monthly raises peaked at around $7 billion. While the pace has slowed since then, experts believe this reset helps create a more balanced environment for both project builders and long-term investors.
Artificial intelligence protocols drew significant investment as well. Everlyn raised $15 million, and several AI-related projects completed early-stage funding rounds.
The overlap between AI and crypto continues to attract venture interest, particularly in areas like computing solutions and decentralized data handling.
Cybersecurity also stood out, with IVIX’s $60.1 million Series B becoming the biggest conventional venture capital deal of August. Stablecoin infrastructure also saw momentum, with Rain completing a $58 million funding round.
Payment systems were another category that pulled in diverse capital. OrangeX landed $20 million in Series B financing, alongside a number of smaller deals aimed at merchant payment tools and cross-border transfers. Growing adoption of cryptocurrency in commercial settings is fueling momentum in this sector.
The gaming space also maintained visibility, with Overtake securing $7 million for blockchain-based game development. More projects in this area are experimenting with token-driven economies and interactive gameplay mechanics.
Unlike July, August lacked a blockbuster token launch like Pump.fun’s, which impacted totals from public token sales. Community-driven offerings brought in about $30.7 million in seven projects, including $6.7 million from Lombard and approximately $11 million combined from Almanak’s two raises. The sales highlight how communities can directly back projects without heavy reliance on institutional capital.
Layer-2 platforms also advanced with targeted investments. Bitlayer secured $5 million through token sales, while Hemi Labs raised $15 million.
Overall, the third quarter reflects ongoing institutional commitment despite month-to-month fluctuations.
As more funds pour into the crypto space, the industry will deepen its reach in different industries and companies like Bit Mining Ltd. (NYSE: BTCM) could see an uptick in investor interest in their stock.
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