Crypto Project Closures Skyrocket as DeFi Dominates the List

The cryptocurrency industry has seen a significant number of project closures in 2026, with between 99 and 101 projects ceasing operations or filing for bankruptcy since the start of the year. DeFi protocols make up the largest share of these closures.

Among the notable casualties are BitMart, which announced its orderly exit on July 27, and AscendEX, which shut down on July 1. Goldfinch and Zapper, two DeFi projects, also ceased operations. Layer-2 projects like Loopring and Botanix have not been spared.

The primary driver of these closures is the depletion of funds raised during the 2021 bull market. Many projects were unable to generate sufficient revenue to sustain operations, and follow-on rounds in the current environment require a path to profitability, which many projects couldn't demonstrate.