Foreign media: The encryption industry is going through a more visible round. The CoinDesk quoted Ryan Kirkley, Chief Executive Officer of Global Settlements Network, as saying that the surge in financing between 2020 and 2021 had pushed many projects into overvaluation, but that they had not created a stable income and that the problem was concentrated in 2026.
Over 100 projects were withdrawn in 2026
CoinDesk refers to RootData data and states that in 2026 more than 100 encryption projects were closed, applied for bankruptcy or largely ceased to function. Among the reasons behind this are the fall in the price of the Yamaya currency, the shrinking of the treasury of the coin, and the significant decrease in the wind investment funds.
According to Galaxy Research data, during the first quarter of 2026, 355 loans were completed in the area of encryption and block chains, amounting to approximately $4 billion. Compared with the fourth quarter of 2025, the volume of financing was roughly halved, but the volume of transactions fell by only about 16 per cent, indicating that it was mainly large-scale.
High-value financing to scale up business pressure
According to Kirkley, many projects complete large amounts of financing with limited revenues and unclear profit paths, and continue to rely on higher valuations, with increasing operating pressures. Once the market becomes weaker, the problem that was originally postponed quickly becomes apparent.
He also mentioned that the problem was further amplified by the finance culture in the encryption industry. Unlike in traditional industries, projects that announced large amounts of financing often led to increases in the price of tokens and in the level of bulk interest, which made some teams more inclined to focus on financing narratives rather than business fundamentals.
Currency governance exposes efficiency issues
It was also mentioned that the amounts in the financing announcement were not always consistent with the actual funds received. Kirkley states that Global Security Network also encountered a situation in which the investor had signed the commitment and ultimately failed to make the contribution.
Decentralized governance, in his view, also faces a real-life test. While token holders do not necessarily remain engaged in governance, when agreements operate under pressure, the governance voting mechanism may slow down the pace of adjustment, making it more difficult for the project to move quickly.
In addition to the industry, Kirkley mentioned that the short-line movement of bitcoin could affect the pace of this round of adjustments. He claims that the market is now closer to the "Wind Bear City" and considers $61,200 as a key support. If this position is lost, the leverage may face greater pressure.
However, the article also states that the use of block chain technology has not stopped. Kirkley states that he contacted seven government representatives interested in block chain technology over the past month. From an institutional and governmental point of view, they are more concerned with reducing costs and rehabilitating financial infrastructure, rather than necessarily accepting the decentrization path envisaged earlier in the encryption industry.