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Data: Q1 2026 Crypto Startups Raise Nearly $5 Billion, Prediction Market Leads with Over $1.7 Billion

On April 4, DL News reported, citing data from DefiLlama, that crypto startups raised nearly $5 billion in the first quarter of 2026, a 16% decrease year-on-year. However, the investment ecosystem continues to evolve, with funding shifting significantly from speculative tokens to practical sectors such as payments and trading infrastructure. The prediction market sector leads with over $1.7 billion, while payments and trading infrastructure attracted $735 million and $423 million, respectively. Top non-crypto institutions such as Sequoia Capital, Founders Fund, Bain Capital, and Alibaba are also accelerating their entry into the market. The top ten funding projects in Q1 are as follows: • Kalshi: $1 billion, valuation of $22 billion, led by Coatue Management, a CFTC-regulated leader in prediction markets • Polymarket: $600 million, investment from Intercontinental Exchange (ICE), a leading decentralized prediction market platform • Rain: $250 million in Series C, valuation nearing $2 billion, led by Iconiq Capital, stablecoin payment infrastructure • BitGo: $213 million, NYSE IPO, valuation over $2 billion, a crypto custody institution • Flying Tulip: $206 million, public token sale, led by DeFi architect Andre Cronje, integrating trading/borrowing/insurance • Whop: $200 million, Tether.

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