**Crypto Venture Capital Funding Dips 20% in Q3**

Crypto venture capital funding dropped 20% to $2.4 billion in Q3, according to Galaxy Digital. The decline is attributed to a "barbell market," where Bitcoin and high-risk memecoins took center stage, leaving mid-tier projects overlooked. The number of deals also fell by 17%, totaling 478.

Despite the dip, Q3 funding was up 21.5% from the same period in 2023. High demand for Bitcoin ETFs from large investors may have shifted focus away from early-stage crypto ventures. Early-stage deals dominated, capturing 85% of investment, with crypto exchanges and AI-integrated firms leading the pack.

U.S.-based firms secured 56% of the funding, followed by Singapore and the UK. Galaxy Digital suggests funding could pick up in Q4 and early 2025 with potential regulatory easing and lower interest rates.