Between March and May 2026, 62 crypto projects ceased operations, spanning Layer2, AI+Crypto, DAO/application chains, modular LST, NFT platforms, cross-chain DeFi, derivatives protocols, on-chain games, metaverse, and experimental oracles. Most were mid-tier projects that raised significant funding based on trending narratives but lacked real user retention and sustainable cash flow. As liquidity tightened and narrative enthusiasm faded, they collectively exited.
Shutdown Wave Hits Multiple Sectors, 62 Projects Exit
The bear market continues to claim victims. From March to May 2026, 62 crypto projects shut down one after another. These projects cover a wide range of sectors: Layer2 scaling solutions, AI+Crypto platforms, DAO/application-specific chains, modular liquid staking tokens, NFT marketplaces, cross-chain DeFi protocols, derivatives platforms, on-chain games, metaverse worlds, and experimental oracle networks. Most were mid-tier ventures that secured substantial funding by capitalizing on hot narratives—such as the AI crypto boom or the metaverse hype—but failed to build genuine user bases or generate recurring revenue. As market liquidity tightened and investor attention shifted away from these narratives, the projects could no longer sustain operations. This collective withdrawal underscores the fragility of narrative-driven business models in the crypto space.
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