Weekly Crypto Funding Analysis: AI Eats the Blockchain

The Numbers Don’t Lie

Between June 16-22, the blockchain space recorded 16 funding deals worth approximately $110 million—a notable decrease from the previous week’s $195 million across 14 deals. This 44% drop in total capital suggests VCs are writing smaller checks, though my data models indicate this reflects strategic positioning rather than sector decline.

AI’s Unstoppable March

Three of the top five deals involved artificial intelligence:

• Cluely ($15M): Developing undetectable AI assistants for professional scenarios (backed by a16z)
• PrismaX ($11M seed): Decentralizing robot vision data collection
• Gradient Network ($10M): Building decentralized AI infrastructure (Pantera/Multicoin)

“When even crypto VCs won’t shut up about large language models,” I joked to my team, “you know we’ve reached peak hype cycle.”

Notable Mentions

• Stablecoins: Ubyx (\(10M) and SaturnX (\)3M) show sustained interest in payment infrastructure
• DeFi: BitVault’s $2M pre-seed proves institutional demand for Bitcoin-backed stablecoins
• Gaming: Base ecosystem’s Utopia secured $4M despite crypto gaming’s cooling phase

My Take as a Crypto Analyst

The shift toward applied blockchain-AI hybrids mirrors what we saw in 2017 with IoT projects—every startup suddenly needed a “blockchain strategy.” While some deals like Gradient Network show real technical merit (their decentralized inference engine could solve real compute problems), I’m tracking whether these valuations hold post-Testnet.

For founders: emphasize real revenue potential over buzzwords. As shown by SaturnX’s profitability within 5 months, sustainable unit economics now outweigh pure protocol growth metrics.