Crypto Shakeout: Over 100 Projects Collapse as Trading Volume Dries Up

In 2026, more than 100 crypto projects have shut down, filed for bankruptcy, or gone permanently dark. This number is comparable to the dot-com bust of two decades ago.

The collapse started in late July when four major firms fell in a single week. BitMEX, an exchange that controlled 57% of the crypto derivatives market and processed $1 trillion in annual trading volume, announced it would permanently cease operations on September 23.

Movement Labs filed for Chapter 11 bankruptcy on July 15, while Storj Labs, a decentralized cloud storage provider, followed suit a week later. This wave of closures has accelerated dramatically since then and spans every segment of the industry: exchanges, wallets, DeFi protocols, Layer-1 and Layer-2 blockchains, NFT platforms, analytics tools, and gaming projects.

The financial backdrop explains the acceleration. Crypto trading volume dropped 70% from its January peak, draining fee revenue from exchanges and market makers. Meanwhile, investor capital has rotated away from speculative tokens toward AI stocks and infrastructure plays.