According to RootData statistics, from March to May, within just two months, a total of 62 crypto projects were recorded as entering a shutdown list, equivalent to an average of one project shutting down per day. The shutdown projects include early ZK-Rollup protocol Loopring, as well as well-funded projects like Yupp, an AI+Crypto infrastructure project led by a16z.
RootData data: 62 projects shut down as of 2026, shutdown timeline and funding scale
Based on RootData’s records, the following are representative crypto projects recorded as shutting down in the first half of 2026, along with their funding amounts:
Loopring: $45 million (ZK-Rollup Layer 2, Ethereum ecosystem; shut down in 2026)
Yupp: $33 million (AI+Crypto infrastructure, led by a16z; shut down in 2026)
Syndicate: $27.8 million (DAO/Appchain/Rollup infrastructure, led by a16z; formally announced to shut down in May 2026)
MilkyWay: $15 million (Celestia ecosystem LST protocol, led by Polychain + Binance Labs; shut down in 2026)
Nifty Gateway: $11.89 million (Gemini-backed NFT platform; stopped operations in February 2026)
Radiant Capital: $10 million (cross-chain DeFi lending; suffered a $50 million hack in October 2024, then shut down in June 2026)
Rage Trade: $6 million (Arbitrum derivative protocol; shut down in 2026)
Fantasy.top: $5.6 million (SocialFi + on-chain gaming, led by Dragonfly; shut down in 2026)
Bloktopia: $4.2 million (Metaverse; the BLOK token’s market cap once reached $1 billion; shut down in January 2026)
Ventuals: Funding amount not disclosed (Hyperliquid HIP-3 perpetual futures; in June 2026, it was merged into the parent ecosystem and users’ assets were liquidated)
Structural features of this shutdown wave
According to PANews analysis, the crypto project pullback in 2026 shows the following structural characteristics, different from the prior single Black Swan event:
· Most of the fallen projects are in the mid-to-lower tier. Protocols that rely on narrative-driven growth face concentrated exposure issues once market liquidity tightens and incentive programs end. Whether it’s DeFi, NFTs, modularization (Celestia ecosystem), or AI+Crypto fusion experiments, all lost the ability to continuously attract capital in 2026. The analysis notes that common traits of shutdown projects include: meaningful funding scale but no network effects formed; narratives compelling enough but unable to survive across cycles; ecosystems appearing thriving but lacking genuine demand anchors (real user retention and cash flow).
· Radiant Capital is especially illustrative. TVL once surpassed $500 million, and the token’s market cap peaked at $400 million to $600 million, but after it suffered an approximately $50 million loss from a hack in October 2024 and the funds could not be recovered, its fundraising capacity became constrained. It ultimately stopped operating in June 2026.
FAQ
How many crypto projects shut down from March to May 2026?
According to RootData data, from March to May 2026 there were 62 crypto projects recorded as entering the shutdown list, equivalent to an average of one project shutting down per day.
Which sectors does this crypto shutdown wave involve?
According to RootData statistics and PANews analysis, the shutdown projects span multiple sectors, including DeFi lending (Radiant Capital), ZK-Rollup Layer 2 (Loopring), NFTs (Nifty Gateway), AI+Crypto infrastructure (Yupp), modular ecosystem LSTs (MilkyWay), DAO/Appchain (Syndicate), Metaverse (Bloktopia), and SocialFi (Fantasy.top).
Why do crypto projects with larger funding still shut down?
According to PANews analysis, the main reason for this shutdown wave is not lack of funding, but that the projects failed to transition from narrative-driven growth to real cash flow and user retention. When liquidity tightens and incentives exit, structural issues in protocol-like projects that rely on cyclical narrative growth become concentrated.
