Crypto Market Faces 'Soft Bear Market' Amid Wave of Failures
The crypto market is experiencing a wave of failures as more than 100 projects have shut down or filed for bankruptcy in 2026, according to RootData figures cited by CoinDesk.
This comes after the industry raised enormous rounds during the 2020-21 fundraising frenzy, often with little revenue and no realistic path to profitability, leaving them dependent on becoming multibillion-dollar businesses to justify further financing, said Ryan Kirkley, CEO of Global Settlement Network.
Kirkley argues that the failures are a delayed consequence of how the industry funded itself during the boom years. The market is now deciding what crypto actually needs, with stablecoins, neobanks, and institutional-grade wallet and settlement infrastructure emerging as winners, while areas like social tokens, memecoins, and parts of Web3 gaming face a harsher reckoning.
The shakeout could intensify if Bitcoin breaks its next major support zone at $61,200. Kirkley described the market as a 'soft bear market' but sees this level as critical.