Cardano founder Charles Hoskinson said more decentralized finance projects could shut down in the second half of 2026 as funding pressure persists and market conditions stay weak. He made the remarks after analytics platform TapTools decided to wind down, arguing that governance and commercialization hurdles have slowed support for builders across the ecosystem.
TapTools set to close within weeks
TapTools said it will shut down within weeks. The company cited the departure of several senior executives, rising infrastructure costs, and the exit of its latest backend developer, which left technical gaps that could not be replaced quickly. The closure was not tied to one issue alone. Staff turnover and operating costs hit at the same time, leaving little room to stabilize the business.
The shutdown adds to a difficult stretch for Cardano-based projects. Earlier, NFT marketplace JPG.Store also ceased operations after scaling back several platform features. Two high-profile exits in the same ecosystem have sharpened questions about how sustainable some Cardano projects are under current conditions.
Governance and treasury access in focus
Hoskinson said he had warned at the start of the year that some businesses could fail if new funding mechanisms were not introduced. He added that market conditions remain tough and could lead to a broader wave of closures in the months ahead.
He pointed to Cardano’s governance structure as a central constraint. In his view, proposals meant to help projects secure funding and keep operating did not win approval. Without that support, teams are left to absorb infrastructure bills, payroll pressure, and development costs on their own. For smaller operators, that can become unsustainable quickly.
Hoskinson also said he personally helped acquire projects including Nami and Blockfrost, while noting that not every business can receive that level of assistance. He stressed that he does not control Cardano’s treasury, governance keys, or protocol parameters, saying those decisions sit with the broader governance process.
Weak network metrics and an “extreme option”
At the network level, several indicators remain soft. Cardano’s total value locked stands at roughly $118 million to $123.85 million, leaving it behind several competing blockchains. For a network trying to expand its DeFi footprint, those figures show limited traction.
Hoskinson also mentioned what he called an “extreme option” if reforms do not move forward. Based on his comments, that path could involve launching a new Cardano through a proof-of-burn model to reset tokenomics and institutional funding mechanisms. The report did not include a timeline or implementation details for that idea.