As ICOs and Token launches become more active again, the flow of VC funding is also becoming clearer. Capital data from the past three months shows that funds are shifting their investment priorities , focusing on narratives with real revenue, connected to the real world, and benefiting from the macroeconomic environment .
One important point: a narrative that experiences a sharp price increase isn't necessarily the one favored by VCs . Conversely, many less prominent areas are attracting the majority of Capital.
These are the narratives that VC prioritized.
Prediction Markets – Leading in Q4
~3.2 billion USD+
Prediction Markets have emerged strongly thanks to their clear fee-based model and ease of expansion beyond crypto. Polymarket and Kalshi are two of the names attracting the largest capital inflows.
👉 This is a rare narrative that successfully combines crypto-native and practical needs .
Layer 1 & Infrastructure – A Long-Term Bet
~1.04 billion USD+
Although no longer a hot topic, blockchain infrastructure remains an indispensable Shard of the puzzle. VCs are willing to invest long-term to capitalize on the ecosystem's new growth cycle.
DeFi – More selective, more practical
~958 million USD+
DeFi continues to attract Capital, but the focus has shifted to protocols with real cash flow , integrating RWAs, stablecoins, or serving institutions.
👉 DeFi isn't disappearing, it's just maturing .
RWA – Narrative with a macro perspective
~920.7 million USD+
Tokenize real assets became a focal point as TradFi made its way onto the blockchain. RWAs are XEM as a natural bridge between crypto and traditional finance.
Payments & Fintech – Targeting the Mass Consumer
Payments: ~660 million USD+
Banking/Fintech: ~217.5 million USD+
Payment and fintech crypto projects are highly valued by VCs due to their clear applicability and low dependence on Token price fluctuations.
The narratives are cooling down.
AI – Slowing Down in Crypto
~60.8 million USD+
Although AI remains a major trend, crypto VCs are cautious due to high valuations and the difficulty in creating a competitive advantage on-chain.
Trading / Perpetuals – Prices rise but VC Capital is low
~54.4 million USD+
A clear paradox: many perp Token have surged in value, but VCs are Capital less due to fierce competition and legal risks .
DePIN – Potential but needs time.
~43 million USD+
DePIN is highly regarded for the long term, but VC Capital remains cautious due to its long deployment cycle and unclear business model.
Conclude
The VC inflows send a clear message:
VCs don't chase price; they chase business models that generate revenue, have practical applications, and can be scaled up in the real world.
In the context of the market reopening Token launches, understanding which narratives VCs are prioritizing will help investors avoid short-term FOMO and better position themselves for the next cycle.
Source: Tokenomist (@Tokenomist_ai)
