The data for the crypto primary market in the first half of 2026 is in. According to RootData, the total amount raised in the crypto industry during this period reached $9.081 billion across 259 deals. Of this, primary market funding (excluding IPOs, post-IPO rounds, and M&A) accounted for $8.658 billion. Compared to the same period in 2025, this represents a 26.1% decline in funding and a 28.5% drop in the number of deals. Meanwhile, there were 75 completed M&A transactions, with 16 disclosing deal values totaling approximately $3.836 billion. The simultaneous decline in funding, contraction in deal volume, and surge in M&A activity—seemingly contradictory trends—reveal deep structural changes underway in the crypto primary market.
Nearly 30% Year-Over-Year Drop in Funding: Does Cooling Mean the Crypto Winter Continues?
The $8.658 billion raised in the primary market marks a 26.1% decrease from the same period last year. While this drop is significant, a longer-term view shows the market hasn’t frozen over. In the first half of 2026, total capital inflow into the crypto market (across all rounds) reached $13.3 billion—almost matching the full-year total for 2024 ($13.2 billion). Capital is still flowing in, but both its pace and direction have shifted. The number of deals fell 28.5% year-over-year, a steeper decline than the total amount raised, indicating that the average deal size has increased. Capital is concentrating in fewer, more mature projects, rather than being spread broadly. This stands in sharp contrast to the "spray and pray" approach that dominated VC investing during the 2021 bull market.
Two Peaks in March and May: What Do Monthly Funding Trends Reveal?
Looking at the monthly breakdown, March and May saw the highest funding activity in the first half, with 66 and 68 deals, respectively. These peaks correspond to the public disclosure of several large funding rounds and M&A deals. After June, the number of deals fell to 43, signaling a cooling of capital activity at the end of Q2. Overall, large deals continue to drive monthly funding totals, but the pace of regular funding rounds is slowing. This trend suggests that primary market fundraising remains active, but the forces sustaining deal volume are shifting from "quantity-driven" to "deal-size-driven."
DeFi, Infrastructure, and CeFi Dominate: Where Is Capital Flowing?
By sector, DeFi, infrastructure, and CeFi were the three most active areas for funding in the first half of 2026. Specifically, DeFi saw 129 deals, infrastructure 116, and CeFi 69. DeFi surpassed CeFi in deal count, reflecting ongoing capital bets on foundational on-chain finance infrastructure—stablecoin protocols, liquidity mechanisms, yield strategies, and on-chain trading tools remain key areas of concentrated investment.
Beyond these three main tracks, AI, payments, prediction markets, and RWA (Real World Assets) also drew significant attention. There were 59 AI-related deals, 46 in payments, and 28 in RWA. The integration of AI and crypto is moving from concept to real-world application, while RWA, despite fewer deals, represents a structural gateway for institutional capital to enter the crypto market by bringing traditional financial assets on-chain.
75 M&A Deals, CeFi Leads the Way: What Does the Consolidation Wave Mean?
There were 75 M&A transactions in the crypto industry in the first half of 2026, with 16 disclosing deal values totaling about $3.836 billion. Most M&A activity was concentrated in CeFi, tools and information services, DeFi, and infrastructure. Notable examples include Mastercard’s acquisition of BVNK for $1.8 billion and Kraken’s acquisition of Reap for $600 million.
The surge in M&A activity signals an important trend: as secondary market liquidity tightens and token prices come under pressure, traditional financial institutions and leading crypto firms are using acquisitions to secure regulatory licenses, user bases, and experienced technical teams. CeFi has become the main battleground for M&A, and not by chance—centralized financial services involve heavily regulated assets such as payment licenses, banking partnerships, and fiat gateways. Acquiring existing compliant infrastructure through M&A is far more efficient than building from scratch. The simultaneous rise in M&A and cooling of primary market funding shows that capital allocation in the crypto industry is shifting from "VC-driven new project incubation" to "strategic acquisition-driven industry consolidation."
Leading Firms Double Down, Smaller VCs Exit Rapidly
Despite a generally cooler funding environment, top crypto VCs remain highly active. Coinbase Ventures led the industry with 25 investments in the first half of 2026, followed by Animoca Brands with 20, and both a16z and Tether with 14 each. Over the past 12 months, Coinbase Ventures has completed 68 investments, maintaining its leading position. The continued activity of these major players shows that exchange-backed VCs, stablecoin issuers, and large native crypto funds are deploying capital consistently across market cycles.
Meanwhile, mid-sized VCs lacking clear competitive advantages are being rapidly eliminated. The number of funding rounds in the first half of 2026 was just 435, down 78% from the 1,978 rounds at the 2022 peak. Firms that built broad portfolios during the last bull market by quickly cashing out tokens have seen their deal volume drop by as much as 98.9%, effectively losing their influence. Capital is shifting from "broad deployment" to "targeted strikes"—only teams that can clearly demonstrate infrastructure value, distribution advantages, or regulatory relevance are able to secure funding.
From $8.658 Billion: Where Will Investment Focus Shift in the Second Half?
Based on the funding structure in the first half, several trends can be projected for the second half of the year. First, M&A consolidation in CeFi is likely to continue. The $3.836 billion in disclosed M&A deals came from just 16 transactions, suggesting the actual scale of consolidation could be much larger when undisclosed deals are considered. The window for traditional financial institutions to enter crypto through M&A remains open. Second, funding momentum for AI + Crypto and RWA is expected to persist. In the first half, there were 59 AI-related and 28 RWA-related deals. Both areas share a common feature: "bringing external value into the crypto ecosystem"—AI contributes computing power and data value, while RWA brings traditional financial assets. These sectors are less dependent on internal crypto market liquidity cycles and thus offer stronger counter-cyclical potential. Third, while the number of funding rounds may continue to shrink, the average deal size is likely to remain high. Once capital begins concentrating in leading projects and mature sectors, this trend is unlikely to reverse in the short term.
Conclusion
The data for the first half of 2026—$8.658 billion raised in 259 primary market deals—doesn’t signal a "colder market," but rather a "changed market." Despite a 26.1% year-over-year drop in funding, total capital inflow has already matched the full-year total for 2024. While the number of deals has fallen sharply, the quality of each deal is rising. Primary market funding may be cooling, but M&A activity is accelerating, with 75 deals totaling $3.836 billion. The competitive landscape is now clearly divided among DeFi, infrastructure, and CeFi, while AI, payments, and RWA are emerging as new strategic focus areas for capital. For market participants, understanding the structural changes behind these numbers is far more valuable than simply tracking the ups and downs.
FAQ
Q1: What was the total amount raised in the crypto primary market in the first half of 2026?
$8.658 billion (excluding IPOs, post-IPO rounds, and M&A). Including all rounds, the total funding reached $9.081 billion.
Q2: How did the funding scale change compared to the same period last year?
Funding dropped 26.1% year-over-year, while the number of deals fell 28.5%.
Q3: Which sectors attracted the most funding?
DeFi (129 deals), infrastructure (116), and CeFi (69) were the most active. AI (59), payments (46), and RWA (28) were also key areas of focus for investors.
Q4: What was the M&A activity like in the first half?
There were 75 completed M&A deals, with 16 disclosing a combined value of about $3.836 billion. Most deals were in CeFi, tools and information services, DeFi, and infrastructure.
Q5: How did leading venture capital firms perform?
Coinbase Ventures led with 25 investments, followed by Animoca Brands with 20, and both a16z and Tether with 14 each.
Q6: What are the likely funding trends for the second half of the year?
M&A consolidation in CeFi is expected to continue, funding for AI + Crypto and RWA is likely to remain strong, and while the number of rounds may keep shrinking, average deal sizes should stay elevated.
