Crypto venture investment recovered in the second quarter of 2026, with VC firms deploying about $5.6 billion into private crypto and blockchain companies across 384 deals, Galaxy Research reported. Total investment rose 31% quarter over quarter, while deal count increased 10%, with late-stage financing driving most of the capital growth. New fund formation remained weak. Only five new crypto venture funds raised about $3.9 billion in the quarter, marking the lowest number of new funds since Q4 2019. Based on the first-half investment pace, full-year 2026 funding is projected at about $20.037 billion, slightly below 2025’s $20.3 billion but above much of the 2023–2024 downturn. Late-stage deals accounted for about 77% of invested capital, early-stage deals represented 15%, and seed and pre-seed rounds made up the remaining 7%. U.S.-based startups received 73.5% of funding and represented 39.1% of the 384 deals, while trading, exchange, investment and lending companies led sector activity with about $3.523 billion across 51 deals.