The cryptocurrency industry is experiencing an accelerated phase of consolidation. According to Ryan Kirkley, CEO of Global Settlement Network, this is not a mystery but rather a "delayed consequence" of how companies raised capital during the boom period.
Data cited by CoinDesk from RootData reveals that over 100 crypto projects have shut down, filed for bankruptcy, or effectively disappeared since the start of 2026. The causes range from falling altcoin prices and depleted token treasuries to scarce venture capital funding, which has exposed businesses lacking sustainable revenue models. Kirkley points out that many of these failed ventures were doomed as far back as the 2020-2021 fundraising frenzy. He notes that the industry at that time suffered from a widespread problem of "raising at excessively high valuations," which directly locks in negative outcomes.
Galaxy Research data shows that in the first quarter of 2026, venture capital firms invested approximately $4 billion across 355 crypto and blockchain deals, roughly half of the amount seen in the fourth quarter of 2025. However, the number of transactions only declined by 16%, indicating that the capital contraction stems primarily from a reduction in larger funding rounds rather than a complete collapse in deal activity.
High-Valuation Funding Plants the Seeds of Trouble
Kirkley explains that many projects raised substantial sums with virtually no revenue and no realistic path to profitability. As a result, they were forced to rely on growing into multi-billion-dollar enterprises just to justify their next funding round. He emphasizes that in the crypto industry, announcing a large funding round can also boost token prices and attract retail attention, giving project teams every incentive to make their fundraising announcements look as impressive as possible.
He also points out that the amounts disclosed in announcements do not always equal the funds actually received. Global Settlement Network itself has experienced situations where investors failed to fulfill their signed commitments, illustrating that there can be a gap between disclosed fundraising figures and actual cash received. For investors, this means they need to more carefully evaluate a project's true financial strength and ability to continue operations, rather than simply focusing on headline numbers.
Governance Mechanisms Face Real-World Tests
Kirkley believes that decentralized governance is another experiment currently undergoing real-world scrutiny. Token ownership does not necessarily mean holders will actively participate in ecosystem governance, and in some cases, governance voting can make it harder for struggling protocols to pivot quickly. He puts it bluntly: "Token holders do not equal active participants in your ecosystem."
In his view, the market is redefining what the crypto industry truly needs. Stablecoins, new forms of banking, and institutional-focused digital wallets and settlement infrastructure are emerging as areas with more tangible demand. Meanwhile, social tokens, meme coins, and certain Web3 gaming sectors may face more severe survival pressure.
Global Settlement Network itself is building blockchain settlement infrastructure for banks, governments, and other regulated financial institutions. Its goal is to support digital currency issuance, tokenized asset settlement, and cross-border payments, with compliance and interoperability built into the network.
Critical Bitcoin Support Level in Focus
On the market front, Kirkley believes that if Bitcoin falls below its next major support level, the industry's shakeout could intensify further. He describes the current market as a "mild bear market," identifying $61,200 as a critical support level. If that level is lost, it could trigger forced liquidations among leveraged traders and open up further downside toward $41,000. Bitcoin was trading near $64,100 at the time of writing.
Despite the weak price action, Kirkley still believes the crypto industry is experiencing the "adoption" that many have awaited for years. Over the past month, he says he has met with representatives from seven governments, all of whom expressed interest in blockchain technology. However, the form this adoption is taking increasingly resembles something quite different from what the crypto industry originally envisioned.
Institutional Interest Rises, But the Path Differs
Kirkley notes that governments and institutions value blockchain's potential to reduce costs and improve financial efficiency, but they are not necessarily willing to achieve these goals through decentralized rails. In other words, the crypto industry may finally be seeing broader use cases, yet at the same time, it is becoming increasingly clear that decentralized currency may not be the outcome ultimately embraced by the mainstream.
This suggests that the current industry consolidation is not merely a price correction, but rather a revaluation of business models and infrastructure roadmaps. As funding conditions tighten, token economics come under pressure, and institutional demand shifts toward compliant and deployable financial infrastructure, the next phase of competition in the crypto market will likely revolve more around real revenue, regulatory fit, and settlement capabilities.