Three Blockchain Projects Shut Down Amid Market Woes

Three blockchain projects have ceased operations this month, adding to the growing list of crypto ventures shutting down in 2026. ZetaChain, a layer-1 blockchain that raised $27 million in 2023 from investors including Blockchain.com and Jane Street Capital, has shut down its mainnet with plans to migrate ZETA tokens to Solana.

The decision was made after the ZetaChain community approved a proposal to halt operations, which passed with 99.4% approval. The current token unlock schedule will remain unchanged, but ZETA holders will see their tokens converted into a native SPL token on Solana at a 1:1 ratio.

Linera and Switchboard Technology Labs have also announced they will cease operations in September. Linera raised $12 million through two funding rounds in 2022 and 2023, but ultimately ran out of funds before launching its mainnet. Switchboard cited a weakening market and decreased demand for blockchain services.

The development team behind ZetaChain believes that migrating to Solana will reduce security costs and overhead, as each security patch must be coordinated among dozens of independent validators. The decision highlights the increasing pressure on crypto projects to adapt to changing market conditions.