Crypto startup funding reached $883 million in February, marking a significant downturn in venture capital activity, according to data from The Block. The number of deals hit a 5.5-year low, with funding levels down approximately 80% from their 2022 peak. Investment is increasingly focused on stablecoin infrastructure, custody, and compliance tools. Additionally, 85% of tokens launched in 2025 are trading below their initial prices, reflecting a shift in venture capital narratives towards revenue-centric models. This trend highlights a growing emphasis on sustainable business models within the crypto sector.