Venture capitalists warn that Artificial Intelligence’s (AI) popularity boom is diverting capital that can flow into cryptocurrency startups.
This is because investors have found real alternatives with faster revenue visibility in AI startups compared to crypto. In an interview with DL News, Charles Chong, the vice president of strategy in crypto advisory firm BlockSpaceForce, said, “Crypto teams need to work harder. That’s pushing founders to be more precise about defensibility, monetisation, and how their models hold up in a slower market.”
In the first week of March, DefiLlama shows that $128 million is invested in crypto startups. Throughout 2026, almost $2,5 miliar has flowed into the industry.
“Investors are still writing checks, but only for teams that can clearly explain value capture and opportunity cost, especially in a world where AI offers a very different risk-reward profile,” Chong concluded.
Here are the top 3 crypto fundings in the first week of March:
- ARQ, a Latin American fintech startup previously known as DolarApp, earned $70 million.
- Crossover Market, owner of the CROSSx network for institutional digital asset trading, raised $31 million.
- QFEX, a hybrid derivative exchange focused on tokenized real-world assets, secured $9,5 million.
Also Read: Real-World Asset Tokenization: The Future of Digital Investments
