Crypto venture capital deals fell to approximately 50 in May, marking the lowest monthly total since before 2021, according to The Block. Both infrastructure and crypto financial services, traditionally the most active sectors, are near multi-year lows. Investors have shifted focus structurally towards AI, with the crypto sector failing to generate early-stage opportunities of the scale seen in the 2021 and 2024 cycles. Despite the slowdown in deal numbers, total funding has not significantly declined, indicating market consolidation rather than a full contraction. The competitive environment for developers is less intense than during previous booms, offering opportunities for projects with clear utility and growth potential. The potential rebound in deal numbers in the second half of the year depends on whether new sectors beyond prediction markets and financial infrastructure can inspire investor confidence.