The crypto industry has quietly been holding a funeral every other day this year. According to data tracked by RootData, between 99 and 101 crypto projects have ceased operations, filed for bankruptcy, or gone inactive from the start of 2026 through late July. More than half of them were DeFi protocols.

The body count keeps climbing

The closures have accelerated through the first and second quarters of 2026, touching nearly every corner of the industry. DeFi protocols make up the largest share, but wallets, exchanges, Layer-2 infrastructures, and NFT projects have all contributed to the tally.

Among the most notable casualties: BitMart, which announced its orderly exit on July 27, and AscendEX, which shut down on July 1. On the DeFi side, Goldfinch and Zapper both ceased operations. Layer-2 projects weren’t spared either, with names like Loopring and Botanix appearing on the closure lists.

The range of 95 to 101 depends on how you count. Some trackers include projects whose websites have gone dark but haven’t issued formal shutdown announcements. Others stick strictly to official closure statements and bankruptcy filings.

Why so many, why now

The primary driver is straightforward: money ran out. Many of these projects raised venture capital during the 2021 bull market, when checks were written faster than pitch decks could be assembled. That funding has now been depleted. Revenue never materialized at a level sufficient to sustain operations, and follow-on rounds in the current environment require something many of these projects couldn’t demonstrate, which is a path to profitability.

Declining on-chain activity made things worse. When fewer users are interacting with protocols, fee revenue drops. When fee revenue drops, the token incentives that were propping up usage become unsustainable. When incentives dry up, users leave.

The market has also shifted philosophically. The era of growth-at-all-costs, subsidized-yield farming is giving way to frameworks built around sustainable fee generation. Projects that couldn’t make that transition found themselves in an awkward position: too expensive to operate, too small to attract new capital, and too proud to pivot.

What survived 2022 isn’t guaranteed to survive 2026

The fact that a project weathered the FTX fallout and the 2022 drawdown doesn’t automatically mean it can survive a multi-year funding drought. BitMart and AscendEX both operated through the worst of the bear market. They still closed in 2026.

Diversification across dozens of small-cap DeFi tokens now carries meaningful extinction risk. More than half of the closures this year came from DeFi. When a protocol shuts down, its token doesn’t always go to zero immediately. There’s often a messy period of declining liquidity, forced selling by treasuries, and cascading effects on protocols that had integrations with the defunct project.

The market is clearly rewarding protocols with real fee income, active users who pay for the service rather than farm it, and operational discipline that doesn’t require perpetual fundraising.