After a summer season marked by cautious investor sentiment and shifting priorities throughout the sector, new figures present that capital flows into crypto are beginning to cool.
Total funding for crypto protocols was down 30% in August, sliding to almost $2 billion from July’s $2.67 billion, in accordance with DeFiLlama.
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Funding Dips But Quarter Good points
Based mostly on studies, third-quarter totals reached $4.57 billion in simply two months, pushing previous Q2’s $4.54 billion. That reveals cash remains to be shifting, even when month-to-month flows look cooler in contrast with previous peaks.
Initially of 2022, month-to-month raises hit about $7 billion. Numbers have come down since then, however 2025 has proven a number of massive spikes that saved traders alert.
Investor Focus Shifts To Present Initiatives
In response to market analyst Daan Crypto Trades, funding has moved away from nonstop new-chain launches towards treasuries and groups constructing on current tasks.
He factors out that new launches are hitting decrease valuations, which has helped preserve worth strikes quieter after listings.
The Complete Funding Raised for brand new Crypto tasks has seen a rise the previous few months however is nowhere near what it was again in 2021 & 2022.
This cycle has been all about treasury firms that are constructing on high of tasks which might be already on the market.
Most capital… pic.twitter.com/nqo25QxVUo
— Daan Crypto Trades (@DaanCrypto) September 11, 2025
Investments Unfold Past DeFi
DeFi nonetheless drew consideration in August, with cash flowing into infrastructure and buying and selling platforms. However different sectors additionally noticed notable rounds.
Stablecoin infrastructure was busy too, with Rain’s increase at $58 million. Fee options additionally attracted funding; OrangeX took $20 million in a Collection B.
South Korea Opens VC Doorways
Following approval by the State Council and cupboard, South Korea’s Ministry of SMEs and Startups mentioned it lifted a long-standing VC funding ban on September 16.
The modification to the Enforcement Decree removes the label that had saved exchanges and brokerages labeled as “restricted enterprise companies” since October 2018.
Current legal guidelines, together with the Digital Asset Consumer Safety Act handed in July 2025, launched deposit safeguards, record-keeping guidelines, and bans on unfair buying and selling. These steps helped persuade regulators to reopen the market.
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Authorities Assist May Increase Native Corporations
The choice to raise South Korea’s long-standing restrictions on crypto funding got here with a transparent message from policymakers.
Officers mentioned the transfer goals to create a extra clear and accountable ecosystem, and to assist enterprise capital movement to firms centered on blockchain and cryptography.
If VCs return, native crypto companies could discover new sources of development capital, whereas traders search for tasks that may ship longer-term worth.
Featured picture from Unsplash, chart from TradingView
