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Following the intense investment period in the cryptocurrency sector in 2020 and 2021, the weeding-out process is reportedly accelerating. Ryan Kirkley, CEO of Global Settlement Network (GSN), stated that projects that achieved high valuations but failed to create a sustainable revenue model are beginning to exit the market.
According to Kirkley, since the beginning of 2026, more than 100 cryptocurrency and blockchain projects have ceased operations, filed for bankruptcy, or effectively disappeared. This trend in the sector is largely attributed to the investment frenzy of 2020-2021.
Kirkley noted that during this period, numerous startups raised significant amounts of capital at high valuations, but a significant portion of these projects failed to develop a business model that would generate real revenue or profitability. The fact that these companies became constantly dependent on new investment rounds to survive, coupled with the tightening of the capital market, made these problems even more apparent.
According to Galaxy Research data, venture capital investments in the cryptocurrency and blockchain sector reached approximately $4 billion in the first quarter of 2026. A total of 355 investment deals were completed during this period. While the total investment amount nearly halved compared to the fourth quarter of 2025, the decrease in the number of deals was only 16 percent.
This table indicates that the financing squeeze in the sector is largely due to a decrease in very high-value investment rounds.
Kirkley believes that some cryptocurrency sectors could emerge stronger following the ongoing market cleanup. He specifically mentioned that stablecoin projects, digital banks, institutional wallet services, and payment and settlement infrastructures could stand out in the coming period.
In contrast, he stated that social token projects, memecoins, and some Web3 gaming startups may face greater pressure.
Kirkley also noted that interest in blockchain from both the corporate and public sectors continues. Stating that he met with government representatives from seven different countries in the past month, the GSN CEO said that the interest of governments and large institutions is shifting from the traditional crypto sector’s decentralized finance approach to use cases such as reducing financial costs, asset tokenization, and cross-border payments.
Attention Drawn to the $61,200 Level for Bitcoin
Kirkley, who also evaluated the Bitcoin market, described the current outlook as a “moderate bear market”.
According to Kirkley, the $61,200 level is a critical support for Bitcoin. He stated that if the price falls below this level, leveraged funds might be forced to sell, and such a scenario could accelerate the downward movement in Bitcoin.
According to the analyst, a break below the $61,200 support level could open up a wider downtrend for Bitcoin towards the $41,000 level.
*This is not investment advice.