Crypto Downturn Reveals Gap Between VC Valuations and Market Cap

Several blockchain startups once valued near $1 billion now have market capitalizations that are only a fraction of those figures, as tighter liquidity forces valuation resets.

This is evident across several high profile projects, according to data compiled by CryptoRank.

Humanity Protocol, which carried a venture valuation of around $1 billion, now has a market capitalization of about $285 million. Fuel Network, also previously valued near $1 billion, is trading closer to $11 million, while Bubblemaps, once assigned a similar venture capital (VC) valuation, has a market cap of about $6 million.

“During bull runs and narrative hype, VCs tend to overprice projects and assign aggressive valuations,” Fundraising Digest, CryptoRank’s venture deals tracker, wrote on X. “However, once sentiment fades or the narrative loses traction, most projects get a reality check and the market resets those euphoric numbers.”

The recent crypto market downturn has exposed gaps between venture capital valuations and public market pricing, revealing how aggressively projects were priced during the last bull cycle.

Related: HashKey secures $250M for new crypto fund amid ‘significant interest’

More crypto projects see sharp reset from VC valuations

The gap continues with projects with relatively lower valuations.

Plasma, which was valued at about $500 million by venture investors now trades around $224 million. ICNT fell from a $470 million VC valuation to a market cap near $247 million. DoubleZero, valued at roughly $400 million in its last round, currently sits near $373 million.

Other projects show even steeper disconnects. Camp Network and Treehouse, each previously valued at about $400 million, now carry market caps of roughly $15 million and $16 million, respectively. Everlyn, once valued near $250 million, trades around $26 million, while SoSoValue has slipped from a $200 million valuation to about $152 million.

“That’s why it’s important to keep a cool head and weigh risk across multiple outcomes, before investing,” Fundraising Digest said.

Related: From FTX fallout to fresh capital: Former US chief raises $35M for new exchange

Crypto VC funding stays weak

As Cointelegraph reported, venture capital funding in the crypto sector remained subdued in November, extending a slowdown that has persisted through late 2025.

While total capital raised has been supported by a handful of big rounds, overall deal activity continues to lag, with just 57 disclosed funding rounds recorded during the month.