In Q1 2026, over a dozen Web3 projects including MilkyWay, Bloktopia, Nifty Gateway, and Polynomial shut down, reflecting waning investor and community interest across DeFi, GameFi, and NFT sectors.

At least 14 Web3 projects including MilkyWay, Bloktopia, Nifty Gateway, and Polynomial shut down in Q1 2026, according to Phoenix Group. The closures span DeFi, NFT, GameFi, and infrastructure sectors, highlighting waning investor and community interest.

More than 20 funded crypto projects—including wallets, DEXs, and NFT platforms—shut down in Q1 2026 due to declining volumes, tight capital, and user shift to large caps. Experts view it as a market reset, not a collapse, accelerating survival of the fittest.

More than 20 funded crypto projects shut down or scaled back in Q1 2026, reflecting a market reset rather than a collapse. Lower trading activity, tighter funding, and capital concentration in Bitcoin ETFs and large-cap assets are pressuring smaller platforms across DeFi, wallets, NFTs, and analytics.

More than 20 funded crypto projects closed in Q1 2026, including Magic Eden Wallet, Leap Wallet, and others. The wave reflects a market reset as capital shifts to large-cap assets, leaving unsustainable platforms behind. Industry experts see this as a necessary cleanup for a more mature phase.