More than 300 Web3 projects have gone under in roughly 600 days, with at least 78 funded teams shut down
A Foresight News review of public disclosures found that since the start of 2025, at least 78 Web3 projects that had each raised more than $1.5 million have announced closures. Among 69 projects with confirmed funding data, total capital raised exceeded $900 million. If smaller teams that never secured institutional backing but quietly disappeared are included, the total number of failed projects rises well above 300. The report says closures have accelerated rather than eased. In a tracked group of 75 projects, 37 shut down in 2025, while 41 had already closed by the halfway mark of 2026. Seventeen closures were recorded in the second quarter of 2026 alone, the highest quarterly figure in the current shakeout. Lack of funding was the leading cause, affecting 31 projects, followed by weak market demand, which accounted for 17 closures. DeFi was the hardest-hit segment, but gaming, NFT, metaverse, Layer 1, Layer 2 and infrastructure projects also saw heavy attrition. The report argues that large venture rounds did not protect teams from failure and points instead to a market that now demands real revenue, real usage and sustainable business models rather than narrative alone.
