Three deals last February ate up nearly half of all crypto money raised that month. Only three. This one fact tells you more about where crypto funding is right now than the headline numbers.
A shrinking pool of large bets
According to the research company Messari, the total collection of crypto in the 12 months of March 2026 has increased by almost 50% compared to the previous year.
However, the number of individual transactions decreased by 46% during the same period. Fewer cycles. Larger checks. The average transaction volume was 34 million dollars, which is a 272% increase compared to the previous year. The number of active investors decreased by almost a third and reached 3225 people.
These three February highlights include Tether’s $200 million investment in online marketplace Whop, $75 million Series B for sports prediction platform Novig led by Pantera Capital, and $70 million Series B for ARQ, a Latin American fintech program built around stablecoins backed by Sequoia Capital. Together, they accounted for 44% of the nearly $800 million raised throughout the month.
It’s been an incredibly tough year for crypto fundraising. Most of the capital entered larger strategic cycles
Out of @dragonfly_xyz we haven’t seen many big VCs close new rounds (a16z and Paradigm active but not closed)
The industry needs new capital pic.twitter.com/N8N58p6yvt
— Eric Turner (@eric_turner) March 8, 2026
Messari describes this pattern as the concentration of capital created by late-stage and strategic mega-cycles. A few big companies are raking in the big bucks, while smaller players are scrambling for scraps.
Early fundraising remains active but sporadic, reports say. Messari pointed to a $1.5 million interstate round that attracted more than 15 backers — a mix of firms like Bloccelerate VC and individual angel investors. This type of activity is fragmented and small-dollar in volume. But it exists in a different world than the mega-cycles that grab the headlines.
Five-year trend of monthly crypto fundraising changes. Source: Messari
VC Drought No one is talking about it
This is the part where the title is buried. Messari CEO Eric Turner noted a problem that goes beyond the deal: Outside of Dragonfly Capital, no major venture capital firm has closed a new fund recently. Dragonfly has closed a $650 million fund with a focus on real-world assets, but it’s largely alone. Turner said frankly – the industry needs new capital.
BTCUSD trading at $68,749 on the 24-hour chart: TradingView
Crypto investors remain active as new funds decline
This is important because venture capital funds have an expiration date. Firms raise a fund, deploy it over several years, and then raise it again. When a new fund closes, it dries up, the money that comes into circulation is finally realized.
A 50% year-over-year profit might sound strong on paper, but it’s fueled by existing pools that aren’t being replenished at the same rate.
Coinbase Ventures, QUBIC Labs and Somnia were the three most active crypto investors in the last three months based on Messari data.
Featured image from KuCoinchart from TradingView
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