Tons of capital has been raised across the crypto industry in recent months, but there has been a noticeable pause in deployment. That might change in the coming months.

As it’s taken longer to close crypto VC deals, valuations across the industry have dropped, according to David Nage, venture capital portfolio manager at Arca.

Some VCs are taking advantage of this time as the market remains investor-friendly, while others are waiting just a bit longer to push out capital.

“There’s been this kind of viral dialogue that sometime around September, valuations are gonna come down even more significantly and it’s just gonna be a frenzy,” Nage said.

Even though there might be a waiting game happening right now, the total amount of capital going into crypto is still up from the year-ago period. Capital raised in the digital asset sector rose nearly 35% from $6.08 billion during the second quarter of 2021 to $8.13 billion in the second quarter of 2022, according to data compiled on PitchBook.