The crypto market is losing two popular projects. The DeFi platform Zapper and crypto exchange AscendEX are shutting down. We break down the reasons.
DeFi platform Zapper has announced it will fully cease operations on August 3, 2026. The project, founded in 2019, at its peak served more than 2 million monthly active users and processed over $13B in transaction volume.
Hot topic: Bitcoin Price Can Soar in July If History Repeats, CryptoQuant Says
Separately, crypto exchange AscendEX ceased operations on July 1, citing financial and operational issues, as well as the EU’s MiCA regulatory framework–which the exchange doesn’t meet.
Contents
Why Zapper Is Closing: ‘Orderly Wind-Down Is the Best Path’
Zapper co-founder and CEO Sebastien Audet said the team explored various options but concluded that “an orderly wind-down is the best path forward.” Zapper started as a personal DeFi portfolio tracker and grew into one of the best-known on-chain aggregators, offering token price tracking, position monitoring, DEX aggregation, and NFT support.
The project raised $16.5M across two rounds. In 2021, Zapper secured a $15M Series A from Framework Ventures, with participation from Sound Ventures and billionaire Mark Cuban. Despite its successful history, the project couldn’t find a sustainable business model as capital concentrated around the largest platforms.
Read more: Sourcing Custom Challenge Coins for Crypto Communities & Events
AscendEX Shuts Down Over Regulatory Pressure and Liquidity Shortage
AscendEX ceased operations on July 1. The main reasons: MiCA’s entry into force in the EU–the exchange lacks authorization–along with financial and operational problems. The company acknowledged a liquidity shortfall after a strategic deal fell through when an unnamed counterparty failed to meet its obligations.
The exchange’s notice said users are unlikely to fully withdraw funds. Automatic withdrawals are disabled; all requests require manual review. The administration does not guarantee either timing or amounts.
“We are assessing the company’s financial position and considering available options regarding account holders. If an official bankruptcy procedure is initiated, the distribution of remaining balances will occur within that framework,” the statement read.
Read more: Top 3 Crypto Exchanges Facing EU Exit as MiCA Rules Take Effect in July 2026
In June, on-chain sleuth ZachXBT flagged problems at the exchange. Analysis of AscendEX’s hot wallets showed nearly empty reserves in Ethereum (ETH), USDT, USDC, and Solana (SOL). He recommended affected users contact law enforcement immediately. Founded in 2018, the exchange had previously suffered a $77M hack in 2021.
Crypto Market Consolidation Continues
The closure of Zapper and AscendEX is part of a broader consolidation trend in crypto in 2026. According to Cryptogics, at least two dozen crypto projects have announced shutdowns. Reasons include financial difficulties, loss of competitiveness, declining demand, shifting market conditions, and regulatory pressure.
Learn more: The End of Crypto Privacy? How Global Regulations Are Changing Everything in 2026
