The Era of Easy Money in Crypto is Ending: Over 100 Projects Closed in 2026
As the era of easy money in crypto comes to an end, the closure of more than 100 projects in 2026 reveals the bill for the industry’s 2020-21 funding frenzy.
According to RootData figures cited by CoinDesk, over 100 crypto projects in 2026 shut down, filed for bankruptcy, or effectively ceased to exist. Falling altcoin prices, dwindling token treasuries, and declining venture capital have left projects without sustainable revenue models in a difficult position.
Data from Galaxy Research also highlighted the shift in funding conditions. In the first quarter of 2026, crypto and blockchain startups secured approximately $4 billion in investment across 355 deals. This figure was nearly 50 percent lower compared to the final quarter of 2025, while the number of deals fell by only 16 percent. This outlook suggests that the decline was primarily driven by a reduction in large-scale investment rounds.
Inflated valuations put projects in jeopardy
Ryan Kirkley, CEO of Global Settlement Network, stated that a significant portion of these failures took shape during the funding craze of 2020-21. According to Kirkley, some projects raised large investments at high valuations despite generating very little revenue and having no realistic plan to achieve profitability.
To secure a new round of investment, these companies were forced to evolve into multi-billion-dollar enterprises. Since large investment announcements can boost token prices and retail investor interest, discrepancies can also arise between the announced funding and the actual cash entering the coffers.
The market views stablecoins, neobanks, and institutional wallet and payment infrastructures as prominent areas for the future. In contrast, meme coins, social tokens, and Web3 gaming projects are undergoing a much harsher weeding-out process. The lack of active participation in governance votes by token holders also makes it difficult for struggling protocols to make quick decisions.
Bitcoin price could test the $61,200 support
Kirkley identified $61,200 as critical support for the Bitcoin price. He noted that if this level is lost, forced selling from leveraged investors could occur, and the price could conditionally retreat to as low as $41,000. At the time of writing, Bitcoin was trading at approximately $64,100.