The RootData 2026 crypto project closures report aggregates information on cryptocurrency companies and protocols that shut down in 2026.
Compiled by Web3 data infrastructure firm RootData, the list includes projects that publicly announced data service shutdowns, filed for bankruptcy, or stopped operating after prolonged outages, and is a means of tracking attrition in the industry.
Contents
- What Is the RootData 2026 Crypto Project Closures Report?
- 99 Crypto Projects Have Already Shut Down in 2026
- The Biggest Crypto Projects That Closed in 2026
- Why Are So Many Crypto Projects Dying?
- Which Crypto Sectors Were Hit the Hardest?
- What Makes 2026 Different From Previous Crypto Bear Markets?
- What Crypto Investors Can Learn From 99 Failed Projects
- Could More Crypto Projects Shut Down in 2026?
- FAQ
What Is the RootData 2026 Crypto Project Closures Report?
Instead of performance against the market index, the report monitored the life cycle of crypto companies across crypto exchanges, wallets, decentralized finance (DeFi) protocols, infrastructure providers, and Web3 companies. By late July 2026, 99 projects were listed on the report crypto project closures 2026.
How RootData Defines a “Dead” Crypto Project
RootData categorizes projects not by their token prices, but by observable signals whether or not the project is still operating. Projects are usually only listed after a closure announcement, bankruptcy filing, or inaction over an extended period of time.
Read More: Why BitMEX Is Shutting Down: Top 3 Fatal Mistakes That Destroyed a Crypto Giant
This method distinguishes dead crypto projects 2026 projects that may only be temporarily slowed through announcements, industry participants, or other verifiable sources.
| Report Feature | Details |
| Report | RootData 2026 Crypto Project Closures |
| Published by | RootData |
| Focus | Cryptocurrency and Web3 projects that ceased operations in 2026 |
| Projects Tracked | 99 (as of late July 2026) |
| Included Sectors | Centralized exchanges, DeFi, wallets, Layer-2, NFT, AI, infrastructure |
| Closure Criteria | Official shutdown, bankruptcy, or prolonged operational inactivity |
| Data Sources | Company announcements, bankruptcy filings, verified public information |
| Primary Purpose | Track operational closures and long-term industry consolidation rather than token performance |
Why the Number Has Reached 99 in 2026
With RootData’s list of projects that officially closed down during the year, the count is already up to 99, and speculative startups aren’t the only ones falling apart. Centralized exchanges, wallets, infrastructure providers, and DeFi projects have been affected.
Because of the trend away from unsustainable business models, the crypto projects shut down 2026 report is viewed as a better proxy for structural change in the digital asset space.
99 Crypto Projects Have Already Shut Down in 2026
According to RootData, a blockchain startup and cryptocurrency project tracker, by late July 2026, 99 Web3 and crypto projects had been shut down, filed for bankruptcy, or permanently taken offline as part of one of the largest waves of failed crypto projects in recent times. The tracker includes a list of both startups and projects that had been around for several years.
However, the closures are far more varied than in previous years, with trading exchanges, wallets, DeFi apps, analytics platforms, and infrastructure firms all represented in the list. This aligns with the conclusion that crypto projects that failed in 2026 involved a wide diversity of products and funding.
Which Types of Projects Failed Most Often
The most affected areas were exchanges and wallets, DeFi, and Web3 infrastructure services. According to RootData, a number of projects were no longer able to operate due to decreases in funding and activity in several sectors.
Beyond speculative token launches, the crypto industry dead projects list includes gaming projects, NFT projects, and developer-focused projects, all pointing to the fact that the crypto startup failures trend is wide-ranging in 2026.
The Biggest Names on the List
Some other prominent brands that released their names in the updated list were BitMart, BitMEX, AscendEX and Zapper, as well as various wallet providers, showing that blockchain project closures are no longer limited to early-stage projects.
The number of abandoned crypto projects grew, even for established platforms, as the industry became increasingly concentrated on capital, trading volume, and users.
Exchanges, Wallets, DeFi, AI, and NFT Projects Affected
These include centralized exchanges, self-custody wallets, DeFi protocols, AI infrastructure projects, NFT platforms, and blockchain analytics services, showing how crypto companies shutting down have emerged across nearly every segment of the digital asset ecosystem.
While only a handful filed for bankruptcy, RootData also tracks projects that failed without bankruptcy, so crypto bankruptcy 2026 contains information on the broader landscape of businesses shutting down permanently in addition to those that pursued bankruptcy.
The Biggest Crypto Projects That Closed in 2026
The 99 shutdowns included both emerging startups and established brands across exchanges, wallets, DeFi, and analytics platforms, highlighting the scale of Web3 project failures throughout 2026.
BitMart
On July 27, 2026, BitMart announced its orderly shutdown to stakeholders, citing the outcome of a review of its business and the current market situation, which concluded that the business and future market opportunities may not be sufficiently helpful to continue operations. The exchange no longer accepts new users or deposits.
The announcement marked one of the most significant crypto exchange closures 2026, while the BitMart shutdown became one of RootData’s most closely tracked events.
BitMEX
Following a review of its holding company HDR Global Trading, BitMEX announced the exchange would shut down on 23 September 2026. The trading platform ceased new account registration immediately, while existing users were given a transition period to properly wind down their trading activity and withdraw their funds.
AscendEX
On July 1, 2026, AscendEX announced its termination, citing regulatory, financial, and operational difficulties exacerbated by the launch of the EU’s MiCA regulatory regime. AscendEX subsequently closed trading and deposits and offered its customers offboarding and withdrawal services.
Loopring
According to Loopring, the project was officially terminated. Additionally, Loopring thanked its users for the support during Loopring’s zero-knowledge protocol development over the years. Loopring’s official website reports that Loopring is no longer operational.
Goldfinch
Shortly after the announcement that Goldfinch was shutting down, it was featured in RootData’s 2026 closure database alongside other failed blockchain startups due to the downsizing of the industry.
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Zapper
After years of operation as a DeFi portfolio management tool and blockchain analytics platform, the portfolio tracking platform Zapper announced its discontinuation following an assessment that it could no longer continue as an independent project.
Family, Ctrl, and Leap Wallets
Several wallet providers also exited the market in 2026. Family, Ctrl, and Leap each announced plans to discontinue their services, reflecting broader NFT project closures and wallet-sector consolidation as user activity and funding declined across the Web3 ecosystem.
| Project | Category | Closure Status | Main Reason |
| BitMart | Centralized Exchange | Orderly shutdown announced | Strategic business review and unfavorable market conditions |
| BitMEX | Centralized Exchange | Operations scheduled to end in September 2026 | Strategic decision by HDR Global Trading |
| AscendEX | Centralized Exchange | Operations terminated | Regulatory pressure, financial and operational challenges, MiCA compliance |
| Loopring | Layer-2 Protocol | Officially discontinued | Project operations ended |
| Goldfinch | DeFi Protocol | Shut down | Project closure during broader industry restructuring |
| Zapper | DeFi Analytics | Discontinued | Business no longer considered sustainable |
| Family Wallet | Wallet | Service discontinued | Product shutdown during market consolidation |
| Ctrl Wallet | Wallet | Service discontinued | Strategic closure |
| Leap Wallet | Wallet | Service discontinued | Market consolidation and declining activity |
Why Are So Many Crypto Projects Dying?
In 2026, instead of a market crash, there have been a series of structural issues for the technology industry, such as higher scrutiny from financial markets, stagnation of user growth, and increased competition, resulting in closures of companies that have raised large funding. This has led to the crypto market shakeout becoming one of the year’s defining trends.
Venture Capital Has Become More Selective
Funding for crypto projects is mostly flat, but investors are backing fewer companies and putting more money into companies showing traction.
According to CoinGecko and Tiger Research, after the high investment volume in the first half of 2026, funding rounds have fallen considerably from the cyclical peaks of the previous cycle.
This has complicated early-stage fundraising for some teams, contributing to a growing number of crypto startup failures as projects struggled to secure follow-on funding after seed or Series A rounds.
Unsustainable Token-Based Business Models
Many previous cycles had projects that relied on token issuance (for a variety of reasons) to survive, but as speculation receded and low-fee revenue and adoption became the norm, this became no longer viable.
The industry has shifted towards cash flow positive, fee-sharing, and long-lived projects rather than mainly token incentive-driven projects. This trend has contributed to numerous DeFi project shutdown announcements throughout 2026.
Declining User Growth and Revenue
Many of these platforms failed to convert their early user adoption into continuing activity; declining transaction volume, a weakening in the demand for trading, and faltering user acquisition also dented the revenues of wallets and consumer-facing Web3 applications.
Without sustainable income, even previously well-funded businesses found it difficult to continue operating, adding to the number of crypto companies shutting down tracked by RootData.
Industry-Wide Market Consolidation
Aiming to realize economies of scale, another major trend in the digital asset sector has been consolidation, with large exchanges, infrastructure providers and financial institutions growing larger through acquisitions and smaller ones either consolidating or exiting the market.
This environment has accelerated crypto ecosystem consolidation as capital, user bases and liquidity flow to the companies with the strongest balance sheets, regulatory positioning and revenue generation.
Which Crypto Sectors Were Hit the Hardest?
The 2026 wave wasn’t just one part of the crypto market. RootData’s research database shows that projects that shut down this year include exchanges, wallets, DeFi protocols, Layer-2s, NFT projects, AI tools, and developer tools. This shows that the restructuring of the industry is wide-ranging.
Centralized Exchanges
Several high-profile centralized exchanges also announced their intended closure in 2026, including BitMart, BitMEX, and AscendEX. The exchanges cited increased regulatory scrutiny, rising compliance costs, and increased competition between exchanges as reasons for their closures.
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The closures have been taken as an indication that exchange operators can no longer rely on name recognition, or that smaller or local exchanges are no longer able to operate sustainably as liquidity is consolidated around larger global exchanges.
DeFi Protocols
DeFi projects such as Goldfinch, Stream Finance, ZeroLend, Ionic, Rage Trade, and others also went dormant, filed for bankruptcy, or shut down in 2026, per data from crypto research firm RootData.
Many of these newer protocols could not transition to a model focused on regular fees instead of incentives, and declining on-chain activity made some of these products less economically viable.
Wallets
There was further consolidation in wallet providers; well-known wallets Family, Ctrl, and Leap Wallet announced they were closing, suggesting that self-custody alternatives may be encountering difficulties as well as services that store customers’ digital assets.
Non-ecosystem wallets, in competition with others (including those behind large wallet ecosystems), must also find a way to monetize free consumer-facing products.
Layer-2 Networks
Scaling projects, also referred to as layer-2 projects, were also impacted. Layer-2 projects such as Loopring, Botanix, Over Protocol and Zero Network have been aggregated by RootData. These projects have also been affected due to tightening funding conditions and slower growth of the ecosystem.
Despite Layer-2 technology being a key part of Ethereum’s roadmap, its shutdown indicates that there is more to commercial success than the technology itself.
NFT Platforms
By 2026, NFTfi, Nifty Gateway and Foundation were among the NFT businesses in RootData’s shutdown tracker, tracking the sustained down cycle in the market after the NFT boom years.
As trading volumes and creator activity have declined, some dedicated NFT marketplaces have struggled to remain viable.
AI and Developer Infrastructure
Meanwhile, developer tooling, blockchain data analytics, and AI-related products also folded, and infrastructure firms including Zapper and Parsec, focused on professional users rather than retail traders, also closed.
This suggests that the 2026 contraction will impact not just speculation-focused use cases, but also the businesses responsible for building and supporting the wider Web3 ecosystem.
| Crypto Sector | Notable Projects | Main Challenges in 2026 |
| Centralized Exchanges | BitMart, BitMEX, AscendEX | Regulatory pressure, higher compliance costs, declining competitiveness |
| DeFi Protocols | Goldfinch, Stream Finance, ZeroLend, Ionic, Rage Trade | Weak fee generation, lower on-chain activity, reduced funding |
| Wallets | Family, Ctrl, Leap Wallet | Difficult monetization, stronger competition from larger ecosystems |
| Layer-2 Networks | Loopring, Botanix, Over Protocol, Zero Network | Slower ecosystem growth, tighter venture funding, limited adoption |
| NFT Platforms | NFTfi, Nifty Gateway, Foundation | Falling trading volumes, declining creator activity, weaker demand |
| AI & Developer Infrastructure | Zapper, Parsec | Reduced enterprise demand, funding constraints, market consolidation |
What Makes 2026 Different From Previous Crypto Bear Markets?
Unlike previous eras, the 2026 cycle has yet to be characterized by panic selling and fundraising freezes. Companies that survived have undergone a long period of shakeout where sound capital allocation, decelerating user growth, and greater emphasis on sustainable revenue have led to closures of many startups.
2018 ICO Collapse vs. 2022 Lending Crisis vs. 2026 Consolidation
The 2018 bear market followed the collapse of the ICO boom, while the 2022 bear market followed the collapses of several major lenders and trading companies (Terra, Celsius, Three Arrows Capital, and FTX) within the crypto sector.
In 2026, RootData’s tracking and VC research showed many projects that had previously raised enough capital to operate shut down when they failed to build sustainable operations.
Why Established Brands Are Now Disappearing
Unlike other crypto winters, 2026 saw major exchanges, wallets, infrastructure players, and DeFi projects announce shutdowns, suggesting a structural readjustment in the industry rather than isolated failures of startups.
Higher operating costs, competition, and liquidity on leading platforms have led to a decrease in long-term viability.
Survival Depends on Revenue, Not Fundraising
Venture capital investment remains available and is mainly focused on projects with an established business model, as shown by CoinGecko findings into calculated preferences.
As a result, the long-term success of crypto projects increasingly relies on recurring revenue rather than fundraising or token issuance.
What Crypto Investors Can Learn From 99 Failed Projects
The rise in shutdowns in 2026 also shows that more funding and a later token launch do not guarantee success. For nearly any category of technology, RootData’s project database records cases of failing projects with funding, user bases, or well-known brands: these were among projects that closed.
Red Flags Before a Project Shuts Down
Indications of failed projects months before their shutdown included: declining development activity, declining user activity and engagement, multiple rounds of company layoffs, delays in product launches, and lack of transparency regarding finances and the roadmap.
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RootData also publishes transparency alerts, warning of projects that provide no information on their team, token, or operations, for investors to consider.
Investors should be concerned by sites that disable services or withdrawals for extended periods, or announce they will be having a planned review, which do not necessarily mean the business is failing but indicate operational difficulties and warrant further inquiry.
How to Identify Sustainable Crypto Projects
Projects with multiple revenue streams, active users, and products with recurring revenue streams have performed better than those that are dependent on token price appreciation or venture capital funding.
Recent market research shows that investors are looking for recurring revenue business models and real user adoption rather than just growth.
Improvements in transparency, development practices, governance, treasury management, and real-world use cases have been considered more important than market cap as the crypto sector has matured.
Why Self-Custody Matters When Exchanges Close
Exchanges like BitMart, BitMEX, and AscendEX have all closed down. Reminding users that, in addition to other risks, they need to consider the risk of a centralized custodian failing. In this scenario, users have a small window to withdraw their assets.
For coins that are being held longer term, many security experts recommend self-custody, where an individual holds their own private keys, rather than leaving their coins on a central exchange. While self-custody comes with its own security considerations, it does not depend as much on the operational activity of a single exchange.
| Investor Checklist | Why It Matters |
| Monitor development activity | A slowdown in code updates may indicate weakening project momentum. |
| Track active users and revenue | Sustainable adoption is generally a stronger signal than token price growth. |
| Review treasury and funding | Projects with healthy finances are better positioned during market downturns. |
| Evaluate team transparency | Public communication, roadmap updates, and governance improve investor confidence. |
| Watch for service disruptions | Long withdrawal freezes or product outages may indicate operational stress. |
| Prefer sustainable business models | Recurring revenue is typically more resilient than token-driven incentives alone. |
| Diversify custody solutions | Keeping long-term holdings in self-custody reduces dependence on centralized exchanges. |
Could More Crypto Projects Shut Down in 2026?
RootData’s running list of tracked projects has also continued to grow from more than 70 by early July to 99 by late July, leaving open the possibility that the industry consolidation may not have concluded and that the failures were not the end of a wave of them.
Is the Worst Already Over?
It’s too early to say that the market has reached the end of the current restructuring. The data collected by RootData shows projects are still being added to the list as companies shut down, declare bankruptcy, or remain inactive for months at a time.
Read More: Why Crypto Regulation Became a Global Power Issue in 2026
The number of planned shutdowns in the future may depend on the availability of funding and project economics, where some projects are better able to generate revenue stability than others.
Which Crypto Sectors Face the Highest Risk?
According to RootData data from late 2022, decentralized finance, NFT platforms, layer-2 blockchain scaling solutions, cryptocurrency wallets, and blockchain infrastructure were the businesses that saw the most failures, with many having been started in the 2021 to 2022 funding boom and unable to continue once investors were more selective about funding.
Projects that have no users, no revenue, or no product and market fit, regardless of the sector, will often fail at some point.
What to Watch During the Rest of 2026
Investors should monitor information from official project announcements, treasury reports, funding rounds, product development, user activities, etc., which often provide earlier insights into a project’s operational status than simply watching its token price.
With the industry continuing to mature, the second half of 2026 could see further market consolidation and additional projects that are able to show a sustainable business model and have consistent revenue income.
FAQ
What Is the RootData 2026 Crypto Project Closures Report?
The report is a RootData-run database of all cryptocurrency and Web3 projects that have officially shut down, gone bankrupt, or become defunct, and it is updated with announcements from the projects and verified sources in the industry.
Why Did 99 Crypto Projects Shut Down?
The most common reasons for closures included declining venture investments, slowing user growth, burgeoning operating costs, and fierce competition, as well as inability to build a sustainable revenue stream despite previous funding rounds.
Which Major Crypto Exchanges Closed in 2026?
The largest exchange closures were BitMart, BitMEX, and AscendEX, which also announced orderly shutdowns of operations and proceeded to allow users to withdraw their assets from the exchange.
Is Loopring Shutting Down?
Yes, Loopring confirmed its operations have stopped, and the project’s website stated that the platform is no longer in operation.
How Does RootData Classify Dead Crypto Projects?
RootData tracks projects that do not have public means to verify operational status, adding projects to the database after they announce their shutdown, file for bankruptcy, or fail to operate for long periods of time.
What Are the Warning Signs That a Crypto Project May Fail?
Common warning signs of startup failure include declining metrics, customer attrition, layoffs, failure to ship product, failure to provide information upon request, failure to pursue investor interest, extended downtimes, and company announcements (such as reorganization or business review).
