The crypto venture capital scene is currently experiencing a downturn in activity, notably in the fourth quarter, with fewer prominent funding rounds compared to earlier months.

Kaden Stadelmann, the CTO of Komodo Platform, remarked that the ‘crypto sector is facing pressure from numerous angles,’ highlighting how AI has significantly diverted interest and investment away from crypto, with VC spending on AI surpassing that on cryptocurrencies. He also emphasized that the existing macroeconomic conditions are prompting investors to adopt a more cautious stance.

Despite the slowdown, funding is still directed toward vital projects focusing on stablecoins, payment systems, and decentralized trading platforms, marking a strategic shift in the kind of projects that attract investors.

Telcoin Secures $25 Million for Digital Asset Bank

Telcoin raised $25 million as part of its pre-Series A round to establish a digital asset bank, aligned with regulatory requirements under a special charter allowing custody of digital assets.

Hercle Attracts $60 Million to Boost Stablecoin Infrastructure

Hercle achieved $60 million in total funding to enhance its cross-border transaction capabilities, supported by institutional investment.

Sui DEX Momentum Raises $10 Million

Momentum, a top decentralized exchange on Sui, has raised $10 million to expand its platform beyond Sui through cross-chain innovations.

Temple Digital Secures $5 Million for Trading Infrastructure

Temple Digital Group, focusing on creating a trading infrastructure on the Canton Network, has raised $5 million to bolster its product offerings.

Arx Research Gathers $6.1 Million for Stablecoin Acceptance

Arx Research aims to facilitate merchant acceptance of both cryptocurrencies and traditional transactions through its new PoS device, supported by $6.1 million in funding.