Q1 2026 Crypto Startup Funding Near $5 Billion, Market Predicted to Be the Biggest Winner

DeepFlowTech · 2026-04-04T00:19:42+00:00

In the first quarter of 2026, funding for crypto startups reached nearly $5 billion, a 16% decrease year-over-year. Capital was primarily directed toward practical sectors, especially prediction markets, which attracted over $1.7 billion. Significant investments were also made in payment and transaction infrastructure. Several top investment firms are accelerating their entry, with standout performances from crypto financing projects like Kalshi, Polymarket, and others.

DeepFlowTech

2026-04-04 00:19:42

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Deep Tide TechFlow message: on April 04, according to DL News citing DefiLlama data, in Q1 2026, crypto startups raised nearly $5 billion in total, down 16% year over year. However, the investment ecosystem continues to evolve, with capital flows clearly shifting from speculative tokens toward practical tracks such as payment and trading infrastructure. Among them, the prediction market sector led with more than $1.7 billion. Payment and trading infrastructure attracted $735 million and $423 million, respectively. Top non-crypto institutions such as Sequoia Capital, Founders Fund, Bain Capital, Alibaba, and others are also accelerating their entry.

The top 10 financing projects in Q1 are as follows:

Kalshi: $1 billion, valuation $22 billion, Coatue Management led the round, CFTC-regulated prediction market leader

Polymarket: $600 million, backed by Intercontinental Exchange (ICE), leading decentralized prediction market platform

Rain: $250 million Series C, valuation nearly $2 billion, Iconiq Capital led the round, stablecoin payment infrastructure

BitGo: $213 million, NYSE IPO, valuation over $2 billion, a crypto custody institution

Flying Tulip: $206 million, public token sale, led by DeFi architect Andre Cronje, integrating trading/lending/insurance

Whop: $200 million, fully invested by Tether, valuation $1.6 billion, a stablecoin payment digital creator marketplace

LMAX Group: $150 million, fully invested by Ripple, integrating the RLUSD stablecoin as margin collateral

Alpaca: $150 million Series D, valuation over $1 billion, Drive Capital led the round, with investors including Citadel Securities

Bluesky: $100 million Series B, led by Bain Capital’s crypto division, a decentralized social platform with more than 43 million users

Anchorage Digital: $100 million, invested by Tether, valuation over $4 billion, the first U.S. licensed national trust crypto institution

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