After a summer time marked by cautious investor sentiment and shifting priorities throughout the sector, new figures present that capital flows into crypto are beginning to cool.
Overall funding for crypto protocols was down 30% in August, sliding to almost $2 billion from July’s $2.67 billion, based on DeFiLlama.
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Funding Dips Yet Quarter Gains
Based on reviews, third-quarter totals reached $4.57 billion in simply two months, pushing previous Q2’s $4.54 billion. That reveals cash remains to be transferring, even when month-to-month flows look cooler in contrast with previous peaks.
At the beginning of 2022, month-to-month raises hit about $7 billion. Numbers have come down since then, however 2025 has proven a number of large spikes that saved buyers alert.
Investor Focus Shifts To Existing Projects
According to market analyst Daan Crypto Trades, funding has moved away from nonstop new-chain launches towards treasuries and groups constructing on present initiatives.
He factors out that new launches are hitting decrease valuations, which has helped preserve value strikes quieter after listings.
The Total Funding Raised for brand new Crypto initiatives 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 initiatives which can be already on the market.
Most capital… pic.twitter.com/nqo25QxVUo
— Daan Crypto Trades (@DaanCrypto) September 11, 2025
Investments Spread Beyond DeFi
DeFi nonetheless drew consideration in August, with cash flowing into infrastructure and buying and selling platforms. But different sectors additionally noticed notable rounds.
Stablecoin infrastructure was busy too, with Rain’s elevate at $58 million. Payment options additionally attracted funding; OrangeX took $20 million in a Series B.
South Korea Opens VC Doors
Following approval by the State Council and cupboard, South Korea’s Ministry of SMEs and Startups stated 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 categorized as “restricted enterprise companies” since October 2018.
Recent legal guidelines, together with the Virtual Asset User Protection Act handed in July 2025, launched deposit safeguards, record-keeping guidelines, and bans on unfair buying and selling. Those steps helped persuade regulators to reopen the market.
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Government Support Could Boost Local Firms
The resolution to raise South Korea’s long-standing restrictions on crypto funding got here with a transparent message from policymakers.
Officials stated the transfer goals to create a extra clear and accountable ecosystem, and to assist enterprise capital circulate to firms targeted on blockchain and cryptography.
If VCs return, native crypto corporations could discover new sources of progress capital, whereas buyers search for initiatives that may ship longer-term worth.
Featured picture from Unsplash, chart from TradingView
