The number of monthly crypto venture capital deals has fallen to its lowest level in five years.

CoinFeed reported on June 4th that, according to The Block, the number of monthly crypto venture capital deals fell to around 50 in May, the lowest level since 2021. Infrastructure and crypto financial services, two historically the most active categories, are both near multi-year lows. Investor attention has structurally shifted to AI, while the crypto space has failed to generate early-stage opportunities of the scale seen in the 2021 and 2024 cycles. Despite the slowdown in deal volume, total funding did not decline significantly in tandem. This suggests the market is consolidating rather than contracting across the board. For developers, the current environment is far less competitive than during previous booms, with projects demonstrating clear usability and growth momentum facing the least competition in recent years. Whether deal volume rebounds in the second half of the year depends on whether new tracks outside of prediction markets and financial infrastructure can ignite investor confidence.