The centralized finance sector received less than 7% of crypto venture funds every month from July to October. This is a far cry from 2021, where it would receive greater than half of all venture capital, according to data compiled by FalconX. 

As their share of venture funds stagnates, centralized exchanges are increasingly adopting features common to decentralized finance (DeFi). Industry watchers were split on whether CeFi’s pivot to DeFi stemmed from a need for liquidity or from real interest in DeFi technology. 

David Lawant, head of research at crypto prime brokerage FalconX, said the firm’s data appears to show a decline over time in CeFi fundraising relative to DeFi. He…

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