Crypto financings down 78%: capital shifts to AI and RWA

According to Woofun AI, a16z Crypto was announced by Chris Dixon on October 22 at the same time as the blog post and social platforms, officially changing its name to a16z Frontier, marking the expansion of the investment boundary of top crypto capital from a single blockchain circuit to a wider field of cutting-edge technology. Although the agency reiterated that it would continue to support crypto projects, this strategic adjustment reflects a profound shift in the underlying logic of the industry.

This structural shift in capital flows is not an isolated event. Since 2026, well-known crypto investment institutions such as Paradigm and Framework have successively expanded their investment landscape, incorporating artificial intelligence, robotics, and fintech into their core vision. Funds that were once firmly betting on the crypto industry are speeding up their flow to a wider market space. This raises a critical question: Is the crypto industry's golden period of entrepreneurship over? If the golden period is defined as an era where reliance on new concepts and token economy models can quickly attract capital and drive up valuations, then this phase is indeed fading away.

However, it would be too pessimistic to think that there are no opportunities to start a business in the crypto sector because of this. What has really changed is the investment logic of capital and the market's requirements for project fundamentals. Over the past few years, the biggest appeal of the crypto industry to entrepreneurs was its unique financing mechanism: by issuing tokens, projects can obtain capital and liquidity before the product matures, and gain high valuations based on expectations when market sentiment is high. But as homogenization models proliferate, the market is no longer paying for products that lack differentiation. When the market improves, these problems are often overshadowed by rising token prices; once the market cools down, the project's ability to operate continuously becomes a core test.

According to data compiled by Woofun AI, the total amount of financing in the crypto industry reached US$13.3 billion in the first half of 2026, which is the same as the full year of 2024; however, the number of financing transactions was only 435, which is only 22% of the peak of 1,978 in 2022, a decrease of about 78%.

This data clearly shows that capital has not completely left the crypto industry, but is increasingly concentrated on a small number of leading projects and large transactions, making it more difficult for small and medium-sized projects to obtain capital. a16z's strategic adjustments further confirm another trend: cryptography is being deeply integrated into the wider business world. As blockchain gradually becomes embedded in traditional financial and fintech products, whether an enterprise belongs to the pure crypto industry is no longer critical. Therefore, entrepreneurs do not need to be limited to the crypto industry, but should focus on what real needs are suitable to be solved through blockchain technology. Stablecoins, payment systems, various real-world assets (RWA), and the integration of artificial intelligence and cryptography have all become interesting directions. For startup teams with limited resources, instead of developing a homogenized public chain or agreement, it is better to start with small and specific needs, find users who are willing to pay, and verify the revenue capacity of the product as soon as possible. Of course, simply crossing borders does not mean that opportunities will automatically increase. Fields such as artificial intelligence and robotics are also fiercely competitive, and the technical threshold and financial requirements are extremely high.

The golden period of entrepreneurship in the crypto industry is not simply over; it is undergoing transformation. After going through multiple cycles, capital won't chase the same narrative forever. Instead of waiting for market sentiment to change again, it is better to take advantage of the market's return to rationality and create products that are truly recognized by the market. This is an inevitable result of crypto entrepreneurship entering the refined operation stage following its barbaric growth in the early days.