Crypto Downturn Reveals Gap Between VC Valuations and Market Cap
Several blockchain startups that previously held venture capital (VC) valuations near $1 billion have seen their market capitalizations collapse to a fraction of those figures as market liquidity tightens and sentiment cools. For example, Humanity Protocol’s value dropped from about $1 billion to $285 million, Fuel Network from $1 billion to $11 million, and Bubblemaps from around $1 billion to $6 million. Projects with lower VC valuations also experienced sharp declines; Plasma fell from $500 million to $224 million, ICNT from $470 million to $247 million, and Camp Network plunged from $400 million to $15 million. These changes highlight the significant disconnect between VC-backed valuations during bull runs and subsequent public market prices. The crypto market downturn has contributed to this reset, exposing how aggressively projects were priced during periods of hype. Venture capital funding in the crypto sector has remained weak, with overall deal activity subdued and only a few high-profile funding rounds masking broader investment declines, especially in early- and mid-stage companies.
