70 Crypto Projects Shut Down in H1 2026 as Funding Wall Hits DeFi, NFTs, Layer 2s

According to RootData, 70 crypto projects shut down, filed for bankruptcy, or became inactive during the first half of 2026, spanning DeFi, NFTs, blockchain gaming, Layer 2 networks, wallets and infrastructure. The list includes Loopring, Goldfinch, NFTfi, Nifty Gateway, ZeroLend, Ionic, Rage Trade, Botanix and others.

Several failed projects had raised significant venture capital. Yupp raised $33 million and attracted nearly 1.3 million users but failed to generate sustainable revenue. Syndicate Labs raised $27.8 million for DAO infrastructure before shutting down as demand weakened. Entropy, a decentralized custody startup, raised $27 million but closed after failing to achieve product-market fit. The shift signals that venture funding and user growth alone no longer guarantee survival; projects must now demonstrate recurring revenue to survive.