The monthly volume of venture deals in the blockchain sector is substantial decreased. Only 116 private crypto investments were recorded in February, one of the lowest numbers in recent years.

By comparison, there were more than 300 in October, representing a decline of more than 60 percent in just five months.

Venture investments are financings that venture capitalists provide to young companies. In return, they receive shares in the company or, as is common in blockchain projects, tokens.

However, this downturn is consistent with broader market conditions. In particular, trade tensions sparked by former U.S. President Donald Trump have reduced risk appetite in financial markets.

The decline in venture capital investment is everywhere, with all sectors within Web3 showing a decline in the number of deals compared to their peak in 2024.

However, despite the lower number of transactions, the total investment value in February remained fairly stable at around one billion dollars.

March did see an outlier: the mega deal between Binance and Abu Dhabi-based MGX. This transaction saw more than $2 billion invested in the exchange.

Although traditional venture deals seem to be cooling off, new investment models are emerging. For example, Coinbase Ventures recently launched an investment group on the Echo platform focused on Base projects. This allows individual traders to pool their resources and invest jointly in Web3 projects.

Meanwhile, crypto investor Haseeb Qureshi recently shared a remarkable story: he turned down an investment in Solana in 2018. In hindsight, it was a gigantic mistake - the missed returns would amount to more than 325,000 percent. As a result, he called it "the biggest investment mistake of all time."