The crypto market is going through a sharper industry washout as the bear market moves into a later stage, according to BlockBeats.
On Aug. 5, ElizaOS, formerly ai16z, founder Shaw Walters said the ai16z/ElizaOS token was "completely dead" and that the related foundation would gradually wind down operations. The announcement marked another notable exit after more than 60 well-known crypto projects shut down earlier this year.
BlockBeats said that in 2026, more than 60 recognized crypto projects, public chains or Layer2 networks, DeFi protocols, wallets, NFT platforms, and DAO tools have announced shutdowns or bankruptcy filings. The pace of closures accelerated noticeably in late July. The retreat has touched nearly every major segment of the industry.
Trading platforms, chains, and infrastructure projects are closing
Among centralized trading venues, derivatives pioneer BitMEX said on July 23 that it would formally shut down on Sept. 23, ending an 11-year run. AscendEX stopped trading on July 1 after failing to secure a Markets in Crypto-Assets, or MiCA, license in the European Union. BitMart has also started a phased shutdown.
In Layer1, Layer2, and infrastructure, Polygon zkEVM, Botanix, Sophon, Powerloom, and MilkyWay have also ceased operations.
DeFi, wallets, NFT, and tooling projects are also under pressure
In DeFi, Radiant Capital, Step Finance, Ionic Protocol, and Everclear have exited. Step Finance shut down after a hack of about $40 million, according to the report.
In the wallet segment, Secondfi, Ctrl Wallet, and Leap Wallet closed because of security vulnerabilities or strategic adjustments.
NFT, gaming, and tooling projects were not spared either. Foundation, Fishing Frenzy, Tally, and Zapper were also listed among the exits.
Three factors are showing up repeatedly
BlockBeats said the main causes are concentrated in three areas:
- business models that failed to produce sustainable revenue, even when some projects once posted relatively strong monthly active users or trading volume;
- cooling sector demand that drove users and capital away;
- hacks that directly cut off access to funding.
Many of the projects had raised funding ranging from several million dollars to tens of millions of dollars, but still struggled to prove product-market fit after the market pulled back.
Unlike the leverage-driven chain reaction seen in 2022, this round looks different. BlockBeats said the current cycle is defined more by projects "starving to death" — orderly or forced exits after cash ran out.