More than 100 cryptocurrency projects have shutdown, filed for bankruptcy, or gone dark this year as prices for digital assets languish and cyberattacks increase.
A new report from crypto platform RootData says the number of crypto projects folding is accelerating with high-profile collapses such as BitMEX, BitMart, and Movement Labs.
The shutdowns involve the full gamut of the crypto industry, from exchanges and digital wallets to DeFi lending protocols, NFT marketplaces, and blockchain projects.
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RootData likens the decline of crypto projects this year to the dotcom shakeout seen in the early 2000s amid a broad collapse in internet stocks.
The firm also argues that this latest pullback is different from crypto's last major shakeout in 2022, when fraud and interconnected leverage brought down Terra, Celsius, and FTX.
This time, there is no single point of contagion.
Rather, there is unwinding all of the optimism from when crypto-friendly U.S. President Donald Trump returned to office in early 2025.
