Crypto heads for another quarterly slowdown

If dealmakers keep up the summer funk, funding in the blockchain and crypto space may be headed toward yet another slowdown in the third quarter, data from S&P Global shows.

Why it matters: A deeper slowdown would suggest valuations have yet to hit bottom in the crypto space. Not to mention, the longer the funding dry spell lasts, the more likely it is for projects and companies to shutter their doors.

Driving the news: So-called web3-based businesses have raised an estimated $980 million from venture capital and private equity investors about halfway into the third quarter, S&P data reveals.

• Should dealmaking remain at this slow pace through September, blockchain startups will notch fundraising gains of $2.2 billion — a notable decline from the $2.7 billion raised in the second quarter of the year and $4.9 billion raised in the same period a year earlier.

What we're watching: The potential return of later-stage deals, which could stop the slowdown.