21.10.202613:34 Forex Analysis & Reviews: Crypto market loses projects faster than it raises money for first time

The crypto market is shedding weak projects this year at a record pace. According to the data, 82 projects and protocols have already shut down in 2026—a number never seen before. The list includes Balancer, Radiant Capital, Neon EVM, and Step Finance, as well as Blast, an Ethereum-layer-2 network that once attracted over $2bn in deposits. Blast announced it would close this month and admitted it had no convincing path to economic sustainability.

The causes differ by project, but the backdrop is the same. Bitcoin fell from a record above $126,000 in October 2025 to levels below $60,000 earlier this year, which hit users, fee income, and development budgets. Step Finance shut in February after a large treasury theft. Radiant Capital announced wind-down in June, never recovering from a 2024 hack. Coinbase-backed Satori Finance ceased operations, concluding revenues would not cover costs. Notably, hacks do not always kill projects immediately; projects die when there is no money left to rebuild.

More often, however, the cited reasons are lack of product market fit, then lack of funds, insufficient revenue, and a decision to pivot to other products. In total these projects raised about $1bn but generated only $250m in fees. Nine of them raised more than $50m each, so large financing was not a safeguard.

Money has not disappeared from the industry; it is concentrating. Venture investment in H1 2026 increased year-on-year, while the number of deals fell by 80%. That means capital flows to a few large projects, while the rest are sold or shuttered.

Technical analysis and recommendations:

Technical picture for Bitcoin. Buyers are currently targeting a reclaim of $82,800, which would open a direct path to $85,400 and then toward $87,100; breaking $87,100 would signal attempts to restore a bull market. On the downside, buyers are expected at $80,900. A return of the trading instrument below that area could quickly push BTC toward $78,800. The most distant downside target would be around $76,900.

Technical picture for Ethereum. A clear hold above $2,508 would open a direct path to $2,600. The furthest upside target is the high near $2,679; breaking that level would indicate strengthening bullish sentiment and a return of buyer interest. On the downside, buyers are expected at $2,417. A return below that area could quickly push ETH toward $2,339. The most distant downside target would be around $2,274.

What we see on the chart:

- Red lines indicate support and resistance levels where either a price slowdown or active growth is expected;

- Green lines indicate the 50-day moving average;

- Blue lines indicate the 100-day moving average;

- Light green lines indicate the 200-day moving average.

A crossover, or a price test of moving averages, typically either halts the move or sparks fresh market momentum.