DeSci Reallocates Over $1 Billion On-Chain, Yellow Says, With Ethereum Foundation Primitives

A decentralized science movement known as “DeSci” is quietly reallocating capital into blockchain-based research governance, according to Yellow.

“Global venture capital funding for crypto firms fell sharply in April 2026 dropping to its lowest level of 2024 as investor appetite continued to cool, according to industry data”

BitKE

The outlet says that “Oltre 1 miliardo di dollari di capitale on-chain è ora allocato in protocolli” that let token holders “votare sui pipeline di farmaci,” “possedere quote frazionate di proprietà intellettuale” and “ottenere rendimento dalle royalty di licenza.”

BitKE

Yellow adds that Bio Protocol (BIO) “è salito di oltre il 34% in una singola finestra di 24 ore terminata il 30 aprile 2026,” reaching “circa 230 milioni di dollari di volume di scambio giornaliero” against a “capitalizzazione di mercato di 94 milioni.”

The same article frames the DeSci shift as more than price action, arguing it targets who controls scientific knowledge and whether blockchain can correct a financing model shaped by the “legge Bayh-Dole del 1980.”

Yellow describes DeSci as “l’abbreviazione di decentralized science” and says the term covers “un insieme eterogeneo di progetti,” so “la precisione è importante.”

It also lists “core primitives” identified by a DeSci working group at the Ethereum (ETH) Foundation, including “IP‑NFT,” “research DAO,” and “token biotech frazionati.”

While DeSci activity is framed as quietly expanding, multiple outlets describe a broader contraction in crypto venture capital.

Crypto.news reports that “Crypto VC funding slid to $659 million across 63 April deals,” calling it “a 74% drop from March” and saying the decline “drags monthly flows back to 2024 lows.”

bloomingbit

The same report says monthly crypto VC flows have trended lower since a peak of “$3.84 billion in October 2025,” while “2026 year‑to‑date funding still totals about $5.64 billion.”

TradingView similarly says crypto VC funding “fell to $659 million across 63 funding rounds in April, down 74% from the $2.6 billion seen across 84 rounds in March,” and adds that the April total was “the lowest monthly fundraising sum since July 2024.”

Bloomingbit also ties the slowdown to Cointelegraph reporting, stating that crypto-related VC investment totaled “$659 million in April,” “down 74% from March,” and “the lowest level in 21 months.”

Across these accounts, the sector breakdown is consistent: CryptoRank data cited by Crypto.news and Cointelegraph show “DeFi led sector activity with 12 deals,” followed by “blockchain services and AI‑linked crypto projects” with “8 rounds” each.

Even as overall crypto VC funding falls, several articles detail which investors were active and what kinds of deals they pursued in April.

“Crypto-focused venture capital firm Dragonfly raises $650 million despite 'the austerity of a bear market'”

CoinDesk

Crypto.news says “market maker GSR’s VC arm was the most active investor,” and it specifies that GSR participated in “four separate raises” while “Tether, Animoca Brands, and Coinbase Ventures” were “close behind.”

Cointelegraph provides a more granular list of GSR’s April rounds, including “a $3.5 million seed round in DeFi protocol Legend Trade on Wednesday,” “a $4 million seed round in DeFi protocol 3F on April 23,” “a $1 million pre-seed round in Enhanced Finance on April 9,” and “an undisclosed investment in real-world asset tokenization protocol Libeara on April 8.”

Cointelegraph also says “Zurich-based digital asset-focused investment manager L1 Digital (L1D) was second with three investments,” including “a $5 million seed round in crypto exchange Exponent on Thursday,” “an $18 million strategic investment in infrastructure provider Squads on Wednesday,” and “a $7.5 million Series A investment into blockchain services company Oh on April 8.”

TradingView echoes the investor ranking and adds that “Y Combinator, Tether, Animoca Brands, landScape Capital, Coinbase Ventures and Kosmos Ventures also participated in three deals each during the month.”

In a separate but related fundraising story, CoinDesk reports that crypto-focused venture capital firm Dragonfly Capital “closed a $650 million fourth fund,” positioning it “alongside a16z and Paradigm,” and it quotes Managing Partner Haseeb Qureshi saying “non-financial crypto has failed.”

The same April funding collapse is framed differently across outlets, even when the underlying numbers match.

Crypto.news and Cointelegraph both attribute the $659 million figure to Cointelegraph’s reporting and CryptoRank data, but Crypto.news emphasizes the month-on-month change as a “74% drop from March” and repeatedly links the slowdown to “risk appetite” cooling after “early‑2026 optimism.”

Cointelegraph

TradingView similarly highlights the “near two-year low” framing and says the drop “suggests venture investors became more selective as crypto markets remained under pressure following months of weaker liquidity and risk appetite,” while also citing Cryptorank data for “$659 million across 63 funding rounds.”

Bloomingbit, by contrast, stresses the “lowest level in 21 months” and repeats that monthly VC investment “has declined steadily since October 2025,” while also specifying that “Market maker GSR was the most active investor, participating in four deals.”

Cryptopolitan adds a different angle by focusing on token sales and ICOs, saying “Only six ICOs were completed in 2026” and that “just six projects chose an Initial Coin Offering (ICO) in 2026,” while also stating that for April “only $653M were raised in 61 funding rounds.”

That outlet’s April total differs from the $659 million figure used elsewhere, and it also says “half are underwater compared to their offering price.”

The sources connect the funding contraction to downstream effects on startups, deal flow, and how investors allocate capital.

“Crypto VC funding slid to $659m across 63 April deals, a 74% drop from March that drags monthly flows back to 2024 lows even as DeFi and AI still attract capital”

crypto.news

Crypto.news says the “venture capital market hit a fresh air pocket in April,” and it argues that “a slower VC tape tends to mean fewer new tokens hitting exchanges—and more scrutiny on whether existing projects can deliver on their roadmaps without relying on another wave of easy money.”

crypto.news

MEXC similarly frames the decline as a “significant pullback” and says investors “scaled back their commitments” due to “a broader slowdown in market trading activity,” adding that “Lower trading volumes reduce the immediate revenue potential for many crypto startups.”

It also states that the decline reflects “growing caution among institutional investors who now demand clearer regulatory frameworks and proven business models,” and it claims “Many jurisdictions, including the United States and European Union, have introduced stricter rules for digital assets.”

CoinDesk’s Dragonfly story offers a counterpoint on how some investors are repositioning rather than exiting, with Managing Partner Haseeb Qureshi saying “Stablecoins are taking over the world,” and that “DeFi has grown so much that it now rivals CeFi.”

Finally, Yellow’s DeSci narrative suggests that even with broader VC tightening, capital can still flow into specific tokenized research primitives, noting that DeSci protocols “tokenizzano tre asset distinti” and that NIH grant success “sono scesi sotto il 20%” in fiscal 2024.