Analysis: The cryptocurrency industry's 'Easy Money Era' is ending, with over 100 projects shutting down by 2026

BlockBeats News, August 18th, Global Settlement Network (GSN) CEO Ryan Kirkley stated that the cryptocurrency industry is undergoing a large-scale purge, with projects that are overvalued, have weak business models, and lack sustainable revenue gradually exiting the market.

Since 2026, over 100 cryptocurrency projects have closed, filed for bankruptcy, or effectively disappeared. Kirkley believes that this wave of failures is largely a consequence of the 2020 to 2021 funding frenzy, where many projects were massively overvalued during that time and obtained huge amounts of funding but lacked real revenue and a path to profitability, ultimately being forced to rely on continuous funding to sustain operations.

Galaxy Research data shows that in the first quarter of 2026, venture capital in the cryptocurrency and blockchain sector was about $4 billion, involving 355 transactions. The funding amount decreased by about half compared to the fourth quarter of 2025, while the number of transactions only decreased by 16%, indicating that the fund contraction mainly came from a reduction in mega-financing.

Kirkley believes that stablecoins, digital banks, and institutional-focused wallets and settlement infrastructure may become winners after the industry purge, while social tokens, meme coins, and some Web3 gaming projects will face tougher challenges.

Regarding Bitcoin, Kirkley referred to the current market as being in a "mild bear market," with $61,200 being a key support level. If this level is broken, leveraged funds may be forced to sell off, further opening up the downside towards $41,000.

Meanwhile, Kirkley mentioned that in the past month, meetings have been held with government representatives from 7 countries. Interest in blockchain technology from institutions and governments is growing, but their focus is more on applications such as reducing financial costs, tokenizing assets, and cross-border settlements, rather than the decentralized financial system emphasized by the traditional cryptocurrency industry.