According to ChainCatcher, data from Web3 asset data platform RootData shows that the list of closed crypto projects in 2026 has grown to 70 and is still rising. The latest additions span multiple major tracks, including Layer 2 protocol Loopring, lending blockchain UX, cross-chain settlement layer Everclear, decentralized credit protocol Goldfinch, Bitcoin-based Layer 2 project Botanix, peer-to-peer NFT lending protocol NFTfi, and DefiLlama-affiliated news media DL News. The closure of these well-known projects signals that the crypto industry's shakeout, which began after the 2022 market downturn, is accelerating into 2026.
Which Tracks Are Hit Hardest?
From the latest list, closures are concentrated in the following areas: Layer 2—Loopring, an early ZK-rollup solution, struggled against the ecosystem dominance of Arbitrum and Optimism, coupled with an inflexible tokenomics model, leading to its shutdown. Lending and credit—UX chain and Goldfinch illustrate the vulnerability of decentralized credit protocols in a high-interest-rate macro environment with rising default risks. Cross-chain infrastructure—Everclear aimed to simplify cross-chain settlement but failed to find a sustainable business model amid fierce competition from native aggregators. Bitcoin Layer 2—Botanix attempted to bring smart contracts to Bitcoin but stalled due to Bitcoin's consensus limitations and regulatory uncertainty. NFT lending—NFTfi's closure reflects the prolonged slump in the NFT market. Chain-native media—DL News shut down as content distribution models struggled to generate revenue.
Root Causes of the Shakeout
The 70 closures are not coincidental. First, since the LUNA crash in 2022, the crypto market has undergone multiple bubbles deflating. Many protocols that raised funds through tokens but lacked real users and revenue have run out of capital. RootData indicates that global crypto venture funding in 2025 fell by over 75% compared to the 2021 peak, starving projects that depended on VC lifelines. Second, regulatory pressures have intensified: the US SEC's enforcement actions and the EU's MiCA framework have raised compliance costs for DeFi, NFT lending, and cross-chain bridges, prompting teams to exit to avoid legal risks. Third, intra-industry competition has intensified, with only the top two or three projects surviving in each track and the rest fading into irrelevance.
Implications for Investors and the Ecosystem
For Chinese crypto learning platform readers, this 'death list' serves as both a warning and a filter. When selecting projects, priority should be given to those with real revenue, active communities, and clear regulatory compliance paths. Meanwhile, the increase in closures means the industry is undergoing a necessary 'de-bubbling' process, which in the long run will channel resources toward better infrastructure and applications. More closures are likely to come, but they also pave the way for the next generation of Layer 2s, lending protocols, cross-chain solutions, and Bitcoin Layer 2 ecosystems. RootData will continue tracking the data. Crypto market participants should stay vigilant and use data and logic rather than emotion to make decisions.