RootData had listed 99 crypto projects as closed, bankrupt or unavailable for long periods by late July, while a CoinDesk report citing RootData described more than 100 projects as shut down, bankrupt or effectively disappeared in 2026; because RootData groups several forms of inactivity, the figures should not be read as 99 or 100 insolvencies. Ryan Kirkley, CEO of Global Settlement Network, said lower altcoin prices, thinner token treasuries, aggressive 2020-21 fundraising valuations and signed commitments that did not always convert into cash are now exposing projects without sustainable economics. Truth Ventures CEO Varun Datta said recurring revenue is the wrong benchmark for pre-seed startups and that investors should focus instead on founder insight, product design and a credible path to a self-supporting business. Galaxy Research said venture investors deployed about $4 billion across 355 crypto and blockchain deals in Q1 2026, down about 50% in funding and 16% in deal count from the prior quarter, with later-stage companies still taking 57% of capital and U.S.-headquartered startups receiving 70.2%.