Crypto VC deal count slumps to five-year low as investors grow more selective

The number of venture capital deals in the crypto space has dropped to a five-year low, with only about 50 deals in May. This slump reflects a broader trend where investors are becoming more discerning and cautious after the previous exuberance. The decline underscores the impact of regulatory scrutiny, market volatility, and the aftermath of high-profile failures in the sector. Despite this, larger billion-dollar rounds are still happening, indicating that while the market is cooling, significant capital is still flowing into promising projects.