RootData data shows that 1,617 out of 3,244 crypto projects with funding records spanning no more than four years and with verifiable fundraising amounts raised no more than $5 million in total, accounting for 49.8% of the sample. The median amount raised by this group was $2.5 million, and about 96% recorded only a single funding round. By sector, DeFi, infrastructure and gaming projects made up a combined 59.2%, with smaller fundraising rounds mainly flowing to protocol development, core technology and consumer-facing applications. At the same time, about one-quarter of the sampled projects have already ceased operations.
The dataset also showed investor participation was higher than the market’s usual perception of “small projects.” Identifiable investor records were available for 92.9% of the sample, while 83.5% disclosed at least two investors. Animoca Brands, Shima Capital and Big Brain Holdings were involved in 84, 69 and 67 projects, respectively. Separately, the U.S. Securities and Exchange Commission formally proposed the Regulation Crypto Assets framework on Aug. 18. The proposal would create two issuance exemption tiers, including a cap of $5 million over four years and up to $75 million in any 12-month period for larger raises, subject to financial statements and ongoing reporting obligations.
According to data cited by ChainCatcher from RootData, 1,617 of 3,244 crypto projects with funding records spanning no more than four years and with verifiable fundraising amounts raised no more than $5 million in total, representing 49.8% of the sample.
The median raise for this group was $2.5 million, and about 96% recorded only one funding round.
DeFi, infrastructure and gaming accounted for most small raises
By sector, DeFi, infrastructure and gaming projects made up a combined 59.2% of the sample. RootData’s figures show that smaller rounds mainly went to protocol development, foundational technology and consumer applications.
Still, one-quarter of the sampled projects have already stopped operating. The report said this suggests that lowering regulatory thresholds may improve fundraising efficiency, but cannot replace product demand or the ability to sustain operations.
Investor participation was broadly visible across the sample
Among these projects, 92.9% had identifiable investor records, and 83.5% disclosed at least two investors.
Animoca Brands, Shima Capital and Big Brain Holdings were involved in 84, 69 and 67 projects, respectively.
SEC proposal sets out two exemption tiers
ChainCatcher said the U.S. Securities and Exchange Commission formally proposed the Regulation Crypto Assets framework on Aug. 18.
Under the proposal, one exemption tier would allow a project to raise no more than $5 million on a one-time basis over four years. Projects seeking larger sums could raise up to $75 million in any 12-month period, but would need to submit financial statements and meet ongoing reporting obligations.
The proposal is now in a 60-day public comment period and has not yet taken effect.
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