DefiLlama data shows that crypto startups raised nearly $5 billion from venture capitalists in Q1 2026, a 16% decrease compared to the same period last year. Despite the overall decline in total funding, the prediction market sector led with over $1.7 billion in funding, followed by payments ($735 million) and trading infrastructure ($423 million), indicating that investments are shifting from pure token speculation to tools with practical utility. (DL News)