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More than 70 blockchain and crypto projects, including the exchanges BitMart, AscendEX, BitMEX and Kriptomat, have shut down, gone bankrupt or gone inactive in the first half of 2026, according to blockchain analytics platform RootData.
The list includes projects that permanently ceased operations, filed for bankruptcy or became inactive after their websites remained inaccessible for extended periods.
The crypto project closures have affected virtually every corner of the digital asset ecosystem from decentralised finance (DeFi) and NFTs to exchanges, infrastructure providers and blockchain gaming highlighting one of the industry’s most significant shakeouts in recent years.
While several startups quietly faded from the market, others made headlines with formal wind-down announcements. Exchanges such as BitMart, AscendEX, BitMEX and Kriptomat all confirmed plans to cease operations, while Bitcoin ATM operator Bitcoin Depot sought bankruptcy protection. Together, the developments paint a picture of an industry moving away from speculative growth and toward financial sustainability.
According to RootData, the latest crypto project closures span nearly every segment of the blockchain industry.
Among the projects listed are Loopring, Goldfinch, NFTfi, Nifty Gateway, Foundation, ZeroLend, Ionic, Rage Trade, Botanix, Over Protocol, Zero Network, Leap Wallet, Dmail, Step Finance, MilkyWay, Fantasy Top and Parsec.
Rather than focusing solely on projects that officially announced their closure, RootData’s methodology also includes businesses that entered bankruptcy proceedings or became inactive after their websites stopped functioning for prolonged periods. The findings suggest that many blockchain ventures disappeared quietly without issuing formal public statements.
The report comes after a difficult first half of the year for digital assets, as weaker investor sentiment, declining venture capital funding and reduced user activity weighed heavily on emerging crypto businesses.
Among the most high-profile crypto project closures was BitMart, which announced it would begin an orderly wind-down of its exchange business.
“After a careful evaluation of the Company’s operating conditions, market environment, and future strategic direction, BitMart has made the difficult decision to commence an orderly wind-down of its trading platform operations.” — BitMart, official announcement.
The exchange said it would gradually suspend registrations, deposits, trading services and other platform functions before fully ending trading operations, while giving customers time to withdraw their assets.
BitMart was not alone.
AscendEX also confirmed it would cease operations, attributing the decision to regulatory, financial and operational challenges.
“We are writing to you about two related matters: (i) the cessation of AscendEX’s operations; and (ii) how withdrawal requests will be processed during the wind-down.” — AscendEX, official customer notice.
The exchange added that its decision reflected “regulatory developments such as the EU Markets in Crypto-Assets Regulation (MiCA)… as well as broader regulatory, financial and operational considerations affecting the platform.”
Elsewhere, European exchange Kriptomat announced it would shut down after more than eight years in operation.
“After more than eight years of building Kriptomat, we have made the difficult decision to wind down our operations.” — Kriptomat, official announcement.
Long-established derivatives exchange BitMEX also confirmed plans to permanently close its exchange business, adding another familiar name to the growing list of crypto project closures affecting centralised trading platforms.
Beyond exchanges, Bitcoin Depot entered voluntary Chapter 11 bankruptcy proceedings, citing an increasingly challenging regulatory environment for cryptocurrency ATM operators. Mining platform RaveOS announced that its cloud infrastructure would be decommissioned, while Kraken disclosed that TEER had ceased operations, rendering on-chain transactions impossible.
One of the most striking aspects of the crypto project closures is that venture capital backing proved insufficient to guarantee survival.
Among the biggest casualties were Yupp, Syndicate Labs and Entropy, startups that collectively raised approximately $87 million from venture capital firm Andreessen Horowitz (a16z).
Yupp, an AI-powered on-chain content platform, secured $33 million in funding and attracted nearly 1.3 million users. Despite its rapid growth, the company failed to generate sustainable revenue to support long-term operations.
Syndicate Labs raised $27.8 million to develop infrastructure for decentralised autonomous organisations (DAOs). However, weakening demand for DAO tools and a private key compromise in April accelerated the company’s closure in May.
Entropy, a decentralised crypto custody startup, raised almost $27 million but struggled to achieve product-market fit despite multiple strategic adjustments. The company shut down in January and received praise for returning its remaining capital to investors rather than exhausting its available funds.
The collapse of these well-funded businesses underscores a broader shift in investor expectations. User growth alone is no longer enough; startups are increasingly expected to demonstrate clear revenue models, sustainable operations and long-term commercial viability.
Several factors have contributed to the surge in crypto project closures throughout 2026.
Bitcoin’s nearly 23% decline during the first quarter reduced investor appetite for speculative blockchain startups, while venture capital firms became considerably more selective about where they deployed new funding.
Rather than backing projects built around hype or rapid community growth, investors increasingly prioritised businesses capable of generating consistent revenue and demonstrating strong product-market fit.
At the same time, institutional and retail capital flowed increasingly into Bitcoin exchange-traded funds (ETFs) and larger cryptocurrencies, leaving smaller blockchain projects struggling to attract liquidity, retain users and secure additional investment rounds.
The slowdown proved especially damaging for NFT marketplaces, DeFi protocols, DAO infrastructure providers and blockchain gaming platforms, all of which experienced declining activity compared with previous market cycles.
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