According to Crunchbase, in the first half of this year, Web3 projects raised $3.6 billion from venture capital firms, a 78% drop from the same period last year. Crunchbase defines cryptocurrency and blockchain startups as Web3.

Deal volumes for Web3 projects hit their slowest pace since the fourth quarter of 2020, when 291 deals fetched $1.1 billion, the data showed. Additionally, another research report from Galaxy Research corroborated Crunchbase's findings. Cryptocurrency and blockchain projects raised $2.32 billion in the second quarter, the lowest amount since the fourth quarter of 2020, Galaxy said.