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    Home»Crypto News»DeFi»Crypto Shutdowns Surge as Funding and Revenue Dry Up
    DeFi

    Crypto Shutdowns Surge as Funding and Revenue Dry Up

    October 21, 2026
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    Cointelegraph
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    Crypto researcher Stacy Muur has identified 82 digital asset projects and protocols that have reportedly shut down in 2026, raising questions about the financial sustainability of businesses across decentralized finance, blockchain infrastructure and Web3 gaming.

    The list, published on X on Tuesday, includes Balancer, Radiant Capital, Neon EVM and Step Finance, among dozens of others. Muur described the number of closures as unlike anything she had previously witnessed.

    The shutdowns follow a prolonged bear market, with Bitcoin (BTC) retreating from its October 2025 record high above $126,000 to below $60,000 earlier this year, adding to the financial strain on projects already struggling to attract users and generate revenue.

    kraken

    Source: Stacy Muur

    Ethereum layer-2 network Blast is among the most prominent casualties. As Cointelegraph reported, the project announced its shutdown earlier this month, citing no “credible path” to economic viability. The decision marked a sharp reversal for a network that once attracted more than $2 billion in deposits.

    Other projects have encountered different problems. In February, Step Finance shut down following a major treasury breach, while Radiant Capital announced in June that it would wind down operations after failing to recover from a 2024 exploit. Meanwhile, Coinbase-backed Satori Finance ceased operations after concluding that its revenue could no longer support the business.

    Related: $4.2B crypto bank Anchorage Digital cuts 17% of workforce: Report

    Why are so many crypto projects shutting down?

    Research published by DeFiLlama in August identified 100 crypto projects that had announced shutdowns in 2026, including 40 in the preceding 90 days. The findings suggest that many projects struggled to attract enough users or generate sufficient revenue to sustain operations.

    The most commonly cited reason was a lack of product-market fit, followed by depleted funding, insufficient revenue and decisions to pivot to other products.

    Collectively, the projects raised approximately $1 billion and generated $250 million in cumulative fees. Nine raised more than $50 million each, suggesting that substantial financial backing offered little assurance of long-term survival.

    The most commonly cited reasons for crypto project shutdowns in 2026. Source: DeFiLlama

    The closures come as crypto investment becomes increasingly concentrated. According to DeFiLlama, venture funding rose in the first half of 2026 compared with the previous year, even as the number of deals fell 80%. Meanwhile, mergers and acquisitions totaled 87 transactions at the time of the report, already 65% higher than the previous year.

    Related: Crypto Biz: Wealthy investors are buying crypto, but their advisers aren’t sold



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