Crypto startups secured nearly $5 billion from venture capitalists in the first quarter of 2026, marking a 16% decline compared to the same period last year, according to DefiLlama data. Despite the overall decrease, the prediction markets sector emerged as a dominant force, attracting over $1.7 billion in funding. This was followed by the payments sector with $735 million and trading infrastructure with $423 million, indicating a shift in investment focus from token speculation to tools with practical utility.