In June, venture capital (VC) funds channeled $481 million into crypto startups, marking a 38.2% decline compared to the previous month. Infrastructure providers continued to dominate the investment landscape, yet decentralized finance (DeFi) and blockchain gaming gained notable traction.

The crypto sector, which saw over $1 billion in funding in March amidst Bitcoin’s record highs, has experienced a gradual decrease in VC investments month over month. Despite a slight quarter-on-quarter drop of 2.6%, June’s total is a significant 52.8% reduction compared to March.

Infrastructure-focused crypto startups secured over $331 million last month, accounting for 69% of all VC funding. Avail, a modular blockchain infrastructure, led the way by raising $43 million in a round spearheaded by Dragonfly Capital, Founders Fund, and Cyber Fund.

M^0, a decentralized financial middleware enabling institutions to issue stablecoins, garnered $35 million from prominent investors such as Bain Capital, Wintermute, and GSR.

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DeFi startups attracted nearly $71 million in June, reflecting an almost 50% increase from May. Renzo, a restaking hub, raised $17 million in a private funding round involving 13 different VC funds.

The blockchain gaming sector also witnessed heightened VC interest, with funding soaring from $27 million in May to $43 million in June—a 59% monthly surge, primarily driven by a $20 million strategic investment in The Sandbox by various VC funds.

However, investments in Web3-general applications declined by 32% in June, totaling $32.8 million. Bondex, a platform for Web3 professional networking, secured $10.5 million through a public token sale and a private investment round, despite a substantial 153% increase in May.