Capital is concentrating into BTC, ETFs, and compliant infrastructure. Small teams without real revenue models will find the next cycle even harder to endure.

According to FinanceFeeds, citing RootData data, approximately 70 crypto projects shut down, filed for bankruptcy, announced cessation of operations, or were classified as inactive in the first half of 2026, spanning multiple sectors including DeFi, NFTs, blockchain games, Layer 2, wallets, infrastructure, and DAO tools. The report noted that this statistic does not equate to 70 formal bankruptcies, but rather includes active closures, bankruptcies, and long-term inactive projects. FinanceFeeds believes that current crypto capital is flowing more toward BTC, large-cap assets, ETFs, and regulated infrastructure, making it difficult for small projects to survive on narratives, token incentives, user growth, or fundraising history alone, with sustainable revenue and product-market fit becoming key to project survival.