Crypto Market Reckoning in 2026: ‘Empty Shell’ Models Face Repricing

According to Yuval Rooz, co-founder and CEO of Digital Asset, the recent sell-off in the cryptocurrency market is indirectly dictating a major change in the industry’s structure.

Those ’empty shell’ tokens that don’t really have any substantial backing or utility are being revalued, and, in contrast, institutions are leaning more towards blockchains that offer value, privacy, and predictability.

Architectural Setup

Rooz points out that the architectural setup and token design significantly distinguish one chain from another in the eyes of institutions. Chains that depend on bridges to connect to other networks are now under threat due to potential security loopholes and for being a factor in hiding transaction flows.

Bridges facilitate moving assets by sentially essentially checking them on their origin and releasing tokens of the equivalent value on the destination network, thus they are always great targets for hackers.

The increased use of bridges has attracted the attention of regulators.A report by Elliptic suggests that $21.8 billion of illicit or high-risk crypto flowed through decentralised exchanges, cross-chain bridges, and swap services in 2025.

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Institutional Demand

Institutional clients like Depository Trust & Clearing Corporation and Euroclear require privacy, seamless operation with other systems without the use of bridges, and cost predictability.

Rooz maintains that general-purpose public chains are not able to simultaneously provide privacy, interoperability, and predictable costs, which is why institutions are exploring other solutions.

On the other hand, large asset managers are tokenising products on Ethereum and other public networks. BlackRock’s BUIDL fund and Franklin Templeton’s BENJI tokens are good examples of beneficial interests being represented in a US government money fund through tokens on a public blockchain.

Also Read: Cryptocurrency Loses Huge Spotlight: 2026 Super Bowl Wake-Up

To Sum Up

Overall, as the crypto industry continues to develop, we see institutions gradually giving more weight to value, privacy, and predictability.

Although there are still obstacles, there are also chances for blockchains capable of satisfying these requirements to rule the market and thereby usher in institutional adoption on a larger scale.

Also Read: Vietnam Proposes Crypto Tax Law in Major Push to Formalise the Market