Crypto Projects Continue to Shut Down as Funding Environment Remains Challenging

At least 70 cryptocurrency projects have shut down in the first half of 2026, with some sources estimating that as many as 95 have ceased operations. These closures have been relatively quiet, without any major incidents like FTX or Terra's collapse.

The majority of these projects were funded during the 2021-22 boom and were unable to find product-market fit. The funding environment has also changed dramatically, with venture capital pouring $29.2 billion into crypto and Web3 startups in 2021 but only $7.8 billion in 2023.

DeFi protocols and NFT platforms have taken the hardest hits, with projects like Goldfinch, NFTfi, Nifty Gateway, Foundation, ZeroLend, Ionic, and Loopring shutting down. The wallet sector has also seen significant closures, including Magic Eden Wallet and Leap Wallet.