Crypto Investment Slows, August Funding Sinks To $2 Billion

After a summer marked by cautious investor sentiment and shifting priorities across the sector, new figures show that capital flows into crypto are starting to ￰0￱ funding for crypto protocols was down 30% in August, sliding to nearly $2 billion from July’s $2.67 billion, according to ￰1￱ Reading: ETF Dreams For Dogecoin: Serious Possibility Or Just Hype? Funding Dips Yet Quarter Gains Based on reports, third-quarter totals reached $4.57 billion in just two months, pushing past Q2’s $4.54 ￰2￱ shows money is still moving, even if monthly flows look cooler compared with past ￰3￱ the start of 2022, monthly raises hit about $7 ￰4￱ have come down since then, but 2025 has shown several big spikes that kept investors ￰5￱ Focus Shifts To Existing Projects According to market analyst Daan Crypto Trades, funding has moved away from nonstop new-chain launches toward treasuries and teams building on existing ￰6￱ points out that new launches are hitting lower valuations, which has helped keep price moves quieter after ￰7￱ Total Funding Raised for new Crypto projects has seen an increase the past few months but is nowhere close to what it was back in 2021 & ￰8￱ cycle has been all about treasury companies which are building on top of projects that are already out ￰9￱ capital… ￰10￱ — Daan Crypto Trades (@DaanCrypto) September 11, 2025 Investments Spread Beyond DeFi DeFi still drew attention in August, with money flowing into infrastructure and trading ￰11￱ other sectors also saw notable ￰12￱ infrastructure was busy too, with Rain’s raise at $58 ￰13￱ solutions also attracted funding; OrangeX took $20 million in a Series ￰14￱ Korea Opens VC Doors Following approval by the State Council and cabinet, South Korea’s Ministry of SMEs and Startups said it lifted a long-standing VC funding ban on September ￰15￱ amendment to the Enforcement Decree removes the label that had kept exchanges and brokerages classified as “restricted venture businesses” since October ￰16￱ laws, including the Virtual Asset User Protection Act passed in July 2025, introduced deposit safeguards, record-keeping rules, and bans on unfair ￰17￱ steps helped convince regulators to reopen the ￰18￱ Reading: Institutional Adoption Rises: 21X Brings Chainlink Into Europe’s Tokenized Securities Market Government Support Could Boost Local Firms The decision to lift South Korea’s long-standing restrictions on crypto funding came with a clear message from ￰19￱ said the move aims to create a more transparent and responsible ecosystem, and to help venture capital flow to companies focused on blockchain and ￰20￱ VCs return, local crypto firms may find new sources of growth capital, while investors look for projects that can deliver longer-term ￰21￱ image from Unsplash, chart from TradingView