In the first half of 2026, there was a clear-cut round of encryption. The RootData data show that more than 70 projects have closed, filed for bankruptcy or have been blocked because the website has been inaccessible for a long time.

Synchronized contraction of multiple tracks

The closure covered a wide range of tracks, including DeFi, NFT, chain trip, Layer2 and infrastructure. Projects named include Loopring, Goldfinch, NFTfi, Nifty Gateway, Foundation, ZeroLend, Ionic, Rage Trade, Botanix, Over Protocol, Zero Network, Leap Wallet, Dmail, Step Finance, Milky Way, Fantasy Top and Parsec.

From the list, this is not a single fall, but a combination of subdivisions. The decline in NFT, DAO, chain trip and partial DeFi project activity has made it difficult for many teams to continue to operate.

It's not low, it's still not commercial.

It was mentioned that a number of projects that had received financing support had not been able to survive the round of adjustments. Yupp, Syndicate Labs and Entropy had a combined financing of approximately US$ 87 million and the investors included a16z.

  • Yupp Finance $33 million, users close to 1.3 million
  • Syndicate Labs Finance $27.8 million
  • Entropy, financing close to $27 million.

Among them, the Yupp main is an AI-driven web-based content platform that fails to create a sustainable source of income. Syndicate Labs, which is mainly building the DAO infrastructure, increased the pressure when demand subsided, and in April the private key leaked and eventually ceased operations in May. Entropy closed in January and returned the remaining funds to investors because no stable product market match had been found.

Transfer of funds to head assets

Project closure is related to changes in the market and financing environment. It was reported that bitcoin fell by almost 23 per cent in the first quarter of 2026, and the attractiveness of high-risk encrypted start-ups declined.

At the same time, wind-in agencies are more cautious in placing greater emphasis on real income, product market matching and sustainable business models, rather than simply following the growth of users or market heat. Funds are also concentrated in bitcoin ETF and head-encrypted assets, which increases the difficulty of obtaining liquidity, retaining users and continuing financing for small and medium-sized projects.