Crypto VC Funding Hits $1.2B in July’s First Week Despite Market Dip

Despite a slight dip in overall crypto market capitalization, venture capital funding in the crypto sector hit $1.2 billion in the first week of July alone — the highest weekly total since January 2024. The surge in funding highlights a growing investor appetite for long-term innovation, particularly in infrastructure, artificial intelligence, tokenized finance, and gaming sectors.

According to a report by Messari and Galaxy Ventures, over 57 projects secured funding between July 1 and July 7, with deal sizes ranging from $2 million to $120 million. Notable rounds included a $100 million Series C by Web3 data aggregator Parsec, a $65 million raise by decentralized AI research network MindLayer, and a $40 million seed round by stablecoin settlement platform OnchainX, backed by a16z Crypto and Sequoia Capital.

The funding spike came even as Bitcoin and Ethereum posted mild weekly declines, indicating that investors are focused on product maturity and protocol fundamentals rather than short-term price action. Analysts believe the recent cooling in token prices has created an optimal entry point for VC firms looking to lock in high-potential projects before the next bullish cycle begins.

Infrastructure remains the most dominant category, accounting for nearly 42% of total capital deployed. Modular Layer-1 chains, multi-chain deployment platforms, and real-world asset (RWA) tokenization startups were especially popular among institutional investors. Additionally, crypto-AI crossover startups continue to attract attention, with multiple deals focusing on privacy-preserving data computation, predictive trading models, and decentralized GPU networks.

Gaming and metaverse projects are also back in favor, albeit with a refined focus. Instead of flashy NFT drops or speculative tokens, VCs are backing studios building play-to-own economies, interoperable avatars, and on-chain royalties. The report notes a shift toward projects with revenue-generating models and experienced game developers from studios like Ubisoft, Epic Games, and Riot.

Interestingly, the Asia-Pacific region dominated this week’s capital flow, with Singapore, Hong Kong, and South Korea-based startups raising nearly 48% of the total amount. North America followed with 36%, while Europe saw a modest rise in early-stage pre-seed investments, particularly in compliance and decentralized identity solutions.

Crypto VCs are becoming increasingly selective, often demanding traction, audited smart contracts, and transparent tokenomics before committing capital. However, the appetite for quality remains strong. Analysts expect July could see over $3.5 billion in funding, marking a significant rebound from Q2’s cautious environment.

As market conditions stabilize and regulatory clarity improves in key jurisdictions, venture capital flows are likely to remain a strong indicator of crypto’s long-term health — even in the face of short-term price corrections.