Coinbase-Backed Crypto Bridge RTE Shut Down Due to Unsustainable Business Economics
RTE, a crypto bridge project backed by Coinbase Ventures, is shutting down on September 30 after failing to develop a sustainable business model. The cross-chain infrastructure project spent the past year exploring commercialization and acquisition opportunities but was unable to find a viable solution.
The company blamed the economics of cross-chain infrastructure, where fees have compressed while costs remain fixed. 'A business that has to run painkiller-grade infrastructure on vitamin-grade revenue inside a dopamine-driven market is structurally upside down,' Router Protocol said in a statement.
Activity in the sector has concentrated on fewer blockchains and capital has shifted towards artificial intelligence. The protocol's current usage reflects this challenge, with only $677 in bridge volume processed over a 24-hour period on September 7, according to DefiLlama.
Holders and developers face separate shutdown deadlines. Token holders should follow the timetable set by their centralized exchange of choice, while developers will need to identify connections to Router infrastructure and migrate before it disappears.