Crypto Startups Secure Nearly $5 Billion in Q1 2026 Funding

Crypto startups raised nearly $5 billion in the first quarter of 2026, marking a 16% year-on-year decline, according to ChainCatcher. Despite the decrease, the investment landscape is evolving, with funds shifting from speculative tokens to practical sectors like payment and trading infrastructure. Prediction markets led the way with over $1.7 billion in funding, while payment and trading infrastructure attracted $735 million and $423 million, respectively. Major non-crypto institutions such as Sequoia Capital, Founders Fund, Bain Capital, and Alibaba are increasingly entering the space. The top ten funding projects in Q1 include: - Kalshi: $1 billion, valued at $22 billion, led by Coatue Management, a CFTC-regulated prediction market leader. - Polymarket: $600 million, funded by Intercontinental Exchange (ICE), a leading decentralized prediction market platform. - Rain: $250 million in Series C, valued at nearly $2 billion, led by Iconiq Capital, focusing on stablecoin payment infrastructure. - BitGo: $213 million, New York Stock Exchange IPO, valued at over $2 billion, a crypto custody institution. - Flying Tulip: $206 million, public token sale, led by DeFi architect Andre Cronje, integrating trading, lending, and insurance. - Whop: $200 million, backed by Tether.