More than 100 crypto projects have shut down, filed for bankruptcy or effectively disappeared in 2026, reflecting what Ryan Kirkley, CEO of Global Settlement Network, described as the delayed fallout from the industry’s 2020-21 fundraising boom. Citing RootData figures reported by CoinDesk, the piece says lower altcoin prices, shrinking token treasuries and scarce venture capital are exposing projects that never built sustainable economics. Kirkley argues many companies raised at inflated valuations despite limited revenue and no clear path to profitability, leaving them reliant on reaching multibillion-dollar scale just to support future financing. Galaxy Research said investors deployed about $4 billion across 355 crypto and blockchain deals in Q1 2026, about half the amount invested in Q4 2025, while deal count fell only 16%, suggesting the pullback came mainly from fewer mega-rounds. Kirkley also said crypto’s fundraising culture often rewarded large announced rounds because they could lift a token and attract retail attention, even when signed commitments did not always turn into cash. He added that decentralized governance (token-holder voting on protocol decisions) has also proved difficult in practice because token ownership does not necessarily produce active participation and can slow a project’s ability to change course. In his view, the market is now sorting for more durable use cases, with stablecoins, neobanks and institutional-grade wallet and settlement infrastructure emerging more strongly, while social tokens, memecoins and parts of Web3 gaming face sharper pressure. He described current conditions as a “soft bear market” and said Bitcoin support at $61,200 is critical, warning the shakeout could deepen if BTC falls through that level.