DeFi Projects That Survived 2022 Crash Shut Down Amid Fiercer Competition

DeFi projects that survived the 2022 collapse of Terra and FTX are shutting down in 2026, according to recent reports. Analysts say this is due to fiercer competition within DeFi rather than industry consolidation.

A Cointelegraph report notes that several high-profile DeFi projects have closed or are winding down, including Zapper, Botanix, Step Finance, Parsec, and Odos Protocol. As of July 26, a total of 101 crypto projects have shut down this year, with over half being DeFi-related.

Some analysts attribute the decline in DeFi market concentration to increased competition. Alex Wszoly of Artemis Research states that concentration among tracked DeFi protocols has decreased since 2024, with sector leaders Uniswap, Aave, and Jupiter still existing but holding lower market shares than two years ago.

Wszoly highlights that fees and revenue are better indicators of economic activity than total value locked (TVL). TVL can distort trends in other areas, he claims. Onchain activity has shifted to other parts of the crypto economy, with more protocols competing for smaller pieces of the market.