More than 100 cryptocurrency projects have reportedly shut down, entered bankruptcy proceedings, or permanently halted operations in 2026, as pressure builds across centralized trading venues, wallets, DeFi lending platforms, NFT marketplaces and blockchain networks.
The closures have accelerated into the second half of the year. In late July, BitMEX, BitMart, Movement Labs and Storj Labs announced shutdowns or filings related to winding down operations, according to the information provided. Moonbeam, the Polkadot parachain, permanently ceased operations on July 31, leaving users who had not bridged assets before the deadline facing restricted access to funds.
The growing shutdown count points to a market that is placing a higher premium on sustainable revenue, reliable infrastructure and clear custody arrangements. Projects with thin liquidity, limited user activity or dependence on short-term token incentives face a more difficult operating environment as security costs and compliance demands rise.
Security losses compound pressure on smaller platforms
On-chain attacks have added another source of strain. Blockaid estimated that attackers stole $1.1 billion from cryptocurrency protocols and users during the first half of 2026, a total that exceeded losses for all of 2025.
The largest incidents cited in the estimate included a $293 million loss involving Kelp DAO and a $285 million loss involving Drift Protocol. TRM Labs separately estimated that actors linked to North Korea accounted for 66% of total cryptocurrency losses during the same period.
Large attacks can damage a protocol well beyond the immediate value stolen. Affected projects may need to suspend withdrawals, compensate users, rebuild smart contracts or seek emergency funding, while users reassess whether to keep assets on the platform. For smaller protocols, a single exploit can remove the liquidity and confidence needed to continue operating.
The Moonbeam shutdown illustrates a different risk. The network’s closure was not framed as a hack, but users still needed to act before operations ended by moving assets to another chain. Cross-chain bridges can allow assets to leave a retiring network, yet they also introduce deadlines, technical steps and the possibility that inactive holders miss the window.
Major tokens show muted response despite project failures
The broad market showed relatively limited movement over the latest 24-hour period, despite the stream of closures and security incidents. Bitcoin rose 0.41%, Ethereum added 0.30%, Solana gained 1.23%, BNB rose 0.41% and TRON advanced 0.21%.
XRP slipped 0.05%, Dogecoin fell 0.21% and Zcash declined 0.27%. The contrast between relatively stable large-cap assets and sharp moves in smaller tokens remained pronounced. TUT rose 62.39%, while BMT climbed 187.83%, according to the market figures provided.
Other strong gainers included BOME, up 22.7%; PEOPLE, up 20.4%; ACT, up 16.38%; GRVT, up 12.9%; and NEIRO, up 12.8%. Such moves can draw trading interest, but they also underline the fragmented nature of liquidity outside the largest tokens, where price swings can be much larger than the moves seen in Bitcoin and Ethereum.
The closure wave has therefore not produced a uniform market reaction. Larger networks and highly liquid assets have remained comparatively resilient, while individual platforms and smaller ecosystems face the more direct consequences of shrinking funding, operational costs and security failures.
Stablecoin cards reach record spending level
Payment activity offered a separate sign that stablecoins are being used more often for routine transactions. a16z crypto reported that spending through cryptocurrency payment cards reached $759 million in July, a record monthly total.
The graphic shared by a16z crypto indicated that services including ReddotPay, EtherFi and KAST accounted for roughly $750 million of the spending total. Card programs generally convert stablecoin balances for purchases through established payment networks, allowing users to spend dollar-pegged digital assets without directly sending tokens to merchants.
The growth in card spending places stablecoin use in a different category from the high-risk lending and yield products that have faced repeated failures. Payment products depend on reliable settlement, custodial arrangements and card-program partners, while DeFi protocols often carry smart-contract, liquidity and governance risks that can change quickly.
Record card activity does not eliminate those risks for users holding stablecoins. The safety of an individual balance can depend on the issuer, reserves, wallet provider, card program and the user’s own custody setup. The rise in spending nevertheless shows demand for stablecoins beyond token trading and on-chain yield strategies.
Revenue leaders show the value of active users
Protocol revenue figures also reveal how unevenly activity is distributed. DeFiLlama data showed Pump.fun generated about $33.73 million in protocol revenue over the past 30 days, narrowly ahead of Hyperliquid at roughly $32.73 million.
Hyperliquid’s token mechanics have also continued to remove HYPE from circulation. Onchain Lens reported that the platform burned approximately $575,400 worth of HYPE during the previous 24 hours, while the latest accounting period recorded $624,100 in fees. Cumulative HYPE burns reached 47.59 million tokens, valued at about $2.56 billion, equal to 4.76% of the token’s 1 billion maximum supply.
These figures do not guarantee durability, but they separate platforms generating measurable fees from projects relying mainly on fundraising or token issuance. In a year marked by more than 100 reported closures, recurring activity has become a practical test of whether a protocol can maintain its infrastructure and security budget.
Regulation remains unsettled in the United States and South Korea
The U.S. Senate’s timetable leaves the CLARITY Act unresolved until lawmakers return from recess. A cloture motion to advance the bill was filed on Aug. 8, but a full vote did not occur before the Senate’s scheduled return on Sept. 14. The first cloture vote is set for Sept. 15 under Senate procedure.
Polymarket traders placed the probability of the CLARITY Act becoming law by Dec. 31 at 21% as of Aug. 9, with more than $5.5 million in contract volume. Galaxy Research had previously reduced its estimate of the bill passing in 2026 to 30%, from 50%.
In South Korea, lawmaker Jung plans to propose delaying the start of virtual-asset income taxation until Jan. 1, 2030, from the currently scheduled Jan. 1, 2027. Under the existing framework, annual virtual-asset profits above 2.5 million won would face a 22% levy, consisting of 20% income tax and 2% local income tax.
South Korea’s Regulatory Reform Committee has also proposed excluding minor legal violations from major-shareholder eligibility restrictions for virtual-asset service providers. The country has not approved new VASP registration applications since June 2024, so changes to shareholder reviews could affect future acquisitions and the ability of new operators to enter the market.
For users, the 2026 closure cycle reinforces the practical value of checking a platform’s financial health, withdrawal policies and contingency plans before committing funds. Networks can disappear, lending protocols can be exploited, and regulatory decisions can reshape the available services long before token prices reflect the change.
Worried about rising hacks and shutdowns? Learn key crypto safety standards every trader should know to better protect your assets.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
