Core findings
2026 has proven to be a time of filtration that is likely to continue. The business models that included paying employees or subsidizing liquidity in tokens collapsed when token prices fell 70-90%.
The filter is economic. The sunsetting group were affected by two causes: demand fell, and money ran out.
Capital is concentrating into fewer, larger bets and M&A has taken on a major role in capital allocation. VC investment in H1 2026 was actually higher than H1 2025 - but the number of deals fell by 80%.
https://newsletter.defillama.com/p/they-re-going-out-of-business