Some blockchain startups that were once worth close to $1 billion now have market capitalizations of only a fraction of that amount, as valuations reset due to the liquidity crunch.
This is evident across several high-profile projects, according to data compiled by CryptoRank.
Humanity Protocol's venture valuation was around $1 billion, but it now has a market cap of around $285 million. Fuel Network, also previously valued at nearly $1 billion, now trades at nearly $11 million, while Bubblemaps, which was once assigned a similar venture capital (VC) valuation, has a market cap of about $6 million.
Fundraising Digest, CryptoRank's venture deal tracker, writes in X that “During bull markets and narrative hype, VCs tend to price their projects higher and assign bullish valuations.” “But when the sentiment wears off or the story loses traction, most projects get a reality check and the market resets those euphoric numbers.”
The recent crypto market downturn has exposed the gap between venture capital valuations and public market pricing, revealing how aggressively projects were priced during the last bull cycle.
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VC valuations will be significantly reset in more crypto projects
This difference continues even for projects with relatively low evaluation values.
Plasma, valued at about $500 million by venture investors, is currently trading at about $224 million. ICNT has fallen from a VC valuation of $470 million to a market cap of nearly $247 million. DoubleZero was valued at about $400 million in its last round and is now valued at nearly $373 million.
Other projects show even greater disconnects. Camp Network and Treehouse's market caps were previously around $400 million each, but now are around $15 million and $16 million, respectively. Everlin, once valued at nearly $250 million, now trades for about $26 million, while Soso Value's valuation has fallen from $200 million to about $152 million.
Comparison of VC valuation and market capitalization. sauce: Fundraising Digest
“That's why it's important to remain calm and weigh the risks across multiple outcomes before investing,” Fundraising Digest said.
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Cryptocurrency VC funding remains sluggish
As reported by Cointelegraph, venture capital funding in the crypto sector remained weak in November, extending the economic slowdown into the second half of 2025.
Although total funding was supported by a small number of large rounds, overall deal activity remained slow, with only 57 public funding rounds recorded during the month.
High-profile fundraisings include Revolut's $1 billion raise and Kraken's $800 million raise ahead of an expected initial public offering, masking widespread weaknesses in early- and mid-term investments.
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