Krypto protocols collected $1.9 billion in August, marking a 30% decline compared to $2.67 billion in July, according to data from Defillama. Despite this monthly decline, the figures for increases in risk capital funds in August are still impressive, with $600 million coming from the public sale of Pump last month.
Defi protocols dominated the financing in August, with several notable increases, including a $50 million round for Portal, a $40 million Series B for M0, and a $20 million strategic investment for A Priori. The sector continues to attract institutional capital, particularly in infrastructure and trading platforms.
Crypto Funding Trends
The third quarter has already exceeded the sums of the second quarter, with $4.57 billion in just two months, compared to $4.54 billion in the previous quarter. This suggests a persistent institutional interest in the crypto sector, despite monthly fluctuations.
AI protocols have secured significant funds, with Everly collecting $15 million and several AI-focused projects completing seed rounds. The convergence of crypto and AI continues to attract risk capital, as protocols develop decentralized computing and data solutions.
Infrastructure and Security
Cybersecurity was another important category, with IVIX completing a $60 million Series B, the largest traditional risk control round of the month. StableCoin infrastructure also attracted capital, with Rain achieving $58 million in Series B financing.
The payment infrastructure attracted a variety of investments, with Orangeex completing a Series B and several smaller rounds of $20 million that support cross-border and dealer payment solutions. Gaming protocols also received attention, benefiting from the increased adoption of blockchain-based game mechanics and tokenomics.
Public Token Sales
Public token sales, however, lost ground, with only $30.7 million raised in seven projects, compared to $6.75 million and Almanak’s dual increases of almost $11 million. Public token sales offer direct participation in the community and reduce dependence on institutional risk capital.
Layer 2 solutions secured strategic investments, with Bitlayer collecting $5 million in public sales with public tokens and Hemi Labs completing a $15 million growth round. Despite monthly fluctuations, the performance of the third quarter shows a persistent institutional interest in the crypto sector.
For more information on crypto funding trends, visit Cryptoslate.
