Hu 火星财经 reports that on August 18, Ryan Kirkley, CEO of Global Settlement Network (GSN), stated that the cryptocurrency industry is undergoing a major consolidation, with projects featuring inflated valuations, weak business models, and lack of sustainable revenue streams gradually exiting the market. Since 2026, over 100 cryptocurrency projects have shut down, filed for bankruptcy, or effectively disappeared. Kirkley believes this wave of failures is largely a consequence of the financing frenzy between 2020 and 2021, during which many projects secured massive funding at overly high valuations but lacked genuine revenue and viable paths to profitability, ultimately relying on continuous fundraising to sustain operations. According to Galaxy Research data, venture capital investment in the cryptocurrency and blockchain sector totaled approximately $4 billion across 355 deals in the first quarter of 2026—a roughly 50% decline from the fourth quarter of 2025—while the number of deals decreased by only 16%, indicating that the funding contraction is primarily driven by a reduction in mega-round investments. Kirkley believes that stablecoins, digital banking, and institutional-grade wallet and settlement infrastructure are likely to emerge as winners following this industry cleanup, while social tokens, meme coins, and certain Web3 gaming projects will face even tougher challenges. Regarding Bitcoin, Kirkley described the current market as being in a “mild bear market,” with $61,200 serving as a key support level; if this level is breached, leveraged positions may be forced to liquidate, further opening the path toward $41,000. Meanwhile, Kirkley noted that over the past month he has met with government representatives from seven countries, and interest from institutions and governments in blockchain technology is growing—though their focus is primarily on applications such as reducing financial costs, asset tokenization, and cross-border settlement, rather than the decentralized finance systems traditionally emphasized by the broader crypto industry.
Over 100 crypto projects shut down in 2026 amid industry consolidation.
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Summary
According to GSN CEO Ryan Kirkley, over 100 crypto projects have shut down, filed for bankruptcy, or disappeared since 2026. He attributed these closures to the 2020–2021 funding boom, during which many projects raised substantial capital at inflated valuations but lacked viable revenue models. Galaxy Research data shows that VC funding in crypto dropped to $4 billion across 355 deals in Q1 2026, representing a 50% decline in capital size compared to Q4 2025. Kirkley identified stablecoins, digital banks, and institutional settlement infrastructure as potential winners, while social tokens and meme coins are likely to face greater challenges. Bitcoin is currently in a mild bear market, with $61,200 serving as a key support level. Industry trends indicate a shift toward more sustainable business models.
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