Router Protocol to Shut Down by 2026 Amid Cross-Chain Sector Challenges
Router Protocol, a cross-chain infrastructure provider backed by prominent investors including Coinbase Ventures, has announced it will cease all operations by September 30, 2026. The company developed tools that allowed assets to be transferred across different blockchains, aiming to improve blockchain interoperability for users and developers.
The decision was made due to unsustainable economic conditions in the cross-chain sector, citing a shift of venture capital and investment attention away from blockchain startups toward artificial intelligence. This reduction in available funding, combined with falling bridging fees and increased competition, has compressed profit margins, making sustainability elusive.
In an effort to wind down operations, Router Protocol will permanently destroy 303,333,198 ROUTE tokens, representing approximately 30% of its nearly 1 billion token supply. The company will also work with major centralized exchanges to coordinate the removal of ROUTE trading and withdrawals.