tl;dr
August saw a 30% drop in total crypto protocol fundraising, with $1.9 billion raised compared to July's $2.67 billion. Despite this decline, venture capital activity remained steady, and institutional interest in infrastructure and trading platforms continued to grow. DeFi protocols led the fundra...
**Crypto Funding Stays Resilient in August Despite Monthly Dip**
August brought a 30% decline in total crypto protocol fundraising compared to July, with $1.9 billion raised—down from $2.67 billion, according to DefiLlama data. Yet, the sector’s broader picture remains bullish: venture capital activity held steady, and institutional interest in infrastructure and trading platforms continued to surge.
**DeFi Dominates, But Not Alone**
DeFi protocols led the charge, securing major rounds that underscored their ongoing relevance. Portal raised $50 million, while M0 closed a $40 million Series B and aPriori landed a $20 million strategic investment. These deals highlight institutional confidence in DeFi’s ability to innovate, even as the broader crypto market faces volatility.
Meanwhile, infrastructure and trading platforms attracted consistent capital. The third quarter alone has already outpaced the second quarter’s $4.54 billion total, with $4.57 billion secured in just two months. This momentum suggests that long-term investors are betting on crypto’s evolution beyond speculative hype.
**AI, Cybersecurity, and Stablecoins Take Center Stage**
The convergence of crypto and AI is gaining traction. Everlyn raised $15 million, and multiple AI-focused projects secured seed rounds. Venture capital is increasingly drawn to decentralized computing and data solutions, which promise to revolutionize how machines learn and process information.
Cybersecurity also emerged as a hotbed of activity. IVIX, a decentralized insurance platform, closed a $60 million Series B—the largest traditional venture round of the month. Stablecoin infrastructure saw similar enthusiasm, with Rain securing $58 million in Series B funding.
Payment infrastructure is another area of growth. OrangeX raised $20 million in its Series B, while smaller rounds supported cross-border and merchant payment solutions. As crypto adoption expands in commercial applications, these projects are positioning themselves to bridge the gap between traditional finance and blockchain.
**Gaming and Layer-2 Solutions See Strategic Moves**
Blockchain gaming is gaining steam, with Overtake securing a $7 million round. Continued development funding across multiple projects signals growing interest in token economies and blockchain-based mechanics.
Layer-2 solutions, which aim to scale crypto networks, also made headlines. Bitlayer raised $5 million through public token sales, and Hemi Labs closed a $15 million growth round. These moves reflect a broader push to make blockchain transactions faster and cheaper.
**Public Token Sales Lose Ground, But Not Completely**
Public token sales, once a cornerstone of crypto fundraising, saw a significant drop. Without a high-profile sale like Pump.fun’s, the category raised only $30.7 million across seven projects. Lombard’s $6.75 million and Almanak’s dual raises totaling nearly $11 million were notable exceptions.
Despite the decline, public token sales still offer unique advantages. They enable direct community participation and reduce reliance on institutional venture capital. However, the shift toward larger, strategic rounds suggests that investors are prioritizing projects with clear roadmaps and proven use cases.
**The Road Ahead**
August’s numbers may show a dip, but the third quarter’s performance is a testament to crypto’s resilience. With AI, infrastructure, and DeFi continuing to attract capital, the sector is far from stagnant. As adoption deepens and innovation accelerates, the next few months could determine whether this is just a temporary lull or the calm before the next wave of growth.
What do you think? Are we seeing the end of public token sales, or is this a temporary setback? How do you see AI and DeFi shaping the future of crypto?