Although the number of single-month transactions continued to decline, the encryption market remained active in July. CryptoRank data show that, as of 20 July, the encryption start-up company was financing approximately $1.2 billion this month, but only about 25 rounds of financing have been disclosed, indicating that funds are being more concentrated in a few large projects.

July financing is still on scale

In the first few months of the year, the volatility of encrypted financing was evident. In January, approximately $1.14 billion was financed, falling to $896.3 million in February and $2.2 billion in March, and the number of transactions in that month was about 85, almost half a year high.

There was a marked fall in April. CryptoRank calculates that the financing for the month was approximately $698.2 million. The previous media count was $659 million, 63 transactions. Although the data varied slightly between the two groups, they showed a simultaneous decline in the amount of financing and the volume of transactions after March.

Financing rebounded to $3.89 billion in May, creating a single-month high in CryptoRank for almost six months. By June, the amount of financing had fallen to $1.44 billion, with approximately 60 transactions. After July, the level of financing remained high, but the volume of transactions decreased further.

Coinbase Ventures is the most active

Among the active investment agencies, Coinbase Ventures has been involved in 33 investments over the past six months, of which one was the leading one, the most active in the CriptoRank statistics. Animoca Brands is second in 19 places, a16z crypto is 18 and Tether is 17.

Becker Ventures, Castrum Capital and Galaxy each participated in 10 transactions, and GSR, Yzi Labs, Y Combinator and Circle Ventures each completed 9. Paradigm also participated in eight investments.

Earlier this month, Paradigm also announced the completion of the fourth tranche of the fund, totalling $1.2 billion. The fund will cover areas such as encryption, artificial intelligence, robotics, software and hardware. At that time, the company stated that this expanded mandate did not imply a withdrawal from the investment in digital assets and would still give priority to the area of layout encryption.

Differing financial flows

By track, the highest level of financing in the last six months was in the exchange, with a cumulative value of about $2.5 billion. The projected market is about $1.9 billion, the payment track about $1.6 billion and AI projects about $1.3 billion.

Sector chains finance nearly $767 million, infrastructure projects about $533 million, mining and computing companies about $433 million, brokering operations about $393 million and RWA projects about $340 million.

In terms of regional distribution, the United States remains the most active encryption market, with 249 projects supported over the past six months. Britain is 67, Singapore 57, China 32 and Japan 30.

DeFi financing continues to lag behind.

DeFi's financing performance continues to lag behind that of other tracks. CryptoRank statistics show that during the past six months, DeFi project financing was about $654 million, lower than exchanges, forecast markets, payments, AI and block chains.

This also means that DeFi has not lost its ability to finance, but investors are more cautious and the number of projects supported by funds continues to decline. Overall, encryption has not cooled down to stagnation, but funding is being concentrated on fewer projects and more explicit tracks, and competition between early projects is increasing.