In Q1 2026, crypto startups raised nearly $5 billion in funding, with predictions that the market track will attract over $1.7 billion.

In the first quarter of 2026, crypto startups raised nearly $5 billion in funding, down 16% year-over-year. Funds flowed primarily into practical sectors, with prediction markets leading, raising more than $1.7 billion.

Top investment institutions are accelerating their entry. Major funding projects include Kalshi and Polymarket, among others.

On April 4, according to DefiLlama data, in Q1 2026 crypto startups raised nearly $5 billion in funding in total, down 16% year-over-year. However, the investment ecosystem continues to evolve, with capital clearly shifting from speculative tokens to practical tracks such as payments and trading infrastructure.

Among them, the prediction market track led with more than $1.7 billion, while payments and trading infrastructure raised $735 million and $423 million, respectively.

Top non-crypto institutions such as Sequoia Capital, Founders Fund, Bain Capital, and Alibaba are also accelerating their involvement.

The top 10 funding projects in Q1 are as follows: Kalshi raised $1 billion, with a valuation of $22 billion. Coatue Management led the round, making it the leading prediction market regulated by the CFTC. Polymarket raised $600 million, with investment from Intercontinental Exchange (ICE), making it a leading decentralized prediction market platform. Rain completed a Series C funding round of $250 million, with a valuation of nearly $2 billion, led by Iconiq Capital, focusing on stablecoin payment infrastructure. BitGo raised $213 million through an IPO on the NYSE, with a valuation of over $2 billion, serving as a crypto custody institution. Flying Tulip raised $206 million through a public token sale, led by DeFi architect Andre Cronje, integrating trading/lending/insurance functions. Whop raised $200 million in funding, with Tether participating. Information on the remaining four projects has not yet been fully disclosed.