# RootData counts 368 crypto project shutdowns in 2026, with DeFi nearly a third
Published: 2026-11-02
Author: Ishu Aggarwal
Produced: drafted with AI help from the sources it names, then checked and edited by Ishu Aggarwal.
URL: https://investin.news/originals/rootdata-crypto-project-shutdowns-2026

The data platform says 368 projects have closed this year, up 244 since August. Only 85 announced it themselves; RootData classified the other 283 as inactive.

In short

- RootData counts 368 crypto projects shut down in 2026, up 244 from its 14 August tally.
- Only 85 projects (23.1%) announced closure; RootData classified 283 (76.9%) as inactive itself.
- DeFi accounts for 110 of the 368 projects (29.9%), infrastructure 64 (17.4%) and AI 27.
- Thirty-seven of the closed projects had raised more than $10m and 94 more than $1m.

Crypto data platform RootData says 368 cryptocurrency projects have shut down so far in 2026, 244 more than it had counted on 14 August, according to its 2026 Crypto Dead Projects List. Only 85 of those projects, or 23.1%, announced their own shutdown. RootData classified the other 283, or 76.9%, as closed after reviewing whether they were still operating, ChainCatcher reported on 2 November and KuCoin 's news flash carried the same figures.

RootData is a crypto data platform that tracks funding, tokenomics and project information, and says it monitors the operating status of more than 21,000 projects in its database, according to ChainCatcher . Its list is a running tally of projects it considers dead, not a register of formal closures. That distinction matters for anyone reading the 368 figure.

The list names Blast, Abstract, Balancer, Goldfinch, CoinEx and BitMEX, according to RootData. ChainCatcher's account of the list adds Zapper, Proof of Play and Linera. RootData's inclusion of a project means it counts that project as shut; it is not a separate confirmation of each closure.

Money did not protect many of them. Thirty-seven of the 368 projects had previously raised more than $10m, and 94 had raised more than $1m, according to RootData. DeFi, or decentralised finance, where people trade and lend crypto through software rather than a company, made up the largest group: 110 projects, or 29.9%. Infrastructure came next with 64 projects, or 17.4%, including 13 layer-one and 13 layer-two networks, the base chains and the faster chains built on top of them. AI projects accounted for 27.

### Why does RootData count 368 dead crypto projects when X posts say 75 to 85?

The gap between 368 and the roughly 75 to 85 that circulate on X comes down to method. RootData's total mixes self-declared shutdowns with projects it judged inactive, while the social trackers count only announced exits. ChainCatcher reported that RootData reviews projects whose official websites and social media have gone more than six months without an update, on top of announcements and news.

### What traders said about the shakeout

On X, the tracker posts drew a mix of relief and criticism. CoinStats (@CoinStats) said on X that it counted 75 closures in 2026, pointing to BitMEX after 11 years, a $128m exploit at Balancer and a 98% fall in Blast's TVL, the money locked in a protocol, from $2.2bn. Bijon (@Bijon_BB) put the number at 82 and blamed poor product-market fit, low revenue, security breaches and a lack of funding. OnchainVibe.eth (@OwnArnab) said on X that the industry is going through a major shakeout.

> 75 crypto projects shut down in 2026. Not hacks. Not rugs. Teams posting “we’re winding down” and meaning it.@BitMEX after 11 years.@Balancer after the $128M exploit.@blast after TVL fell 98% from $2.2B. The team that maintained IPFS. April and June took 27 between them.… pic.twitter.com/DIT7se1UV8 (CoinStats @CoinStats · 28 Oct 2026 · View on X)

> 82 crypto projects shut down in 2026 even project that raised million couldn't survive here some of the biggest reason was : - poor product market fit - low revenue - security breache - and lack of funding it was really a big thing without a good product, surviving in… pic.twitter.com/UaxFmTbDko (Bijon @Bijon_BB · 28 Oct 2026 · View on X)

> 🚨 82 CRYPTO PROJECTS REPORTEDLY SHUTTING DOWN IN 2026 The crypto industry is going through a major shakeout. The shutdown tracker highlights 82 projects. Here are the 62 names visible in the shared list: 🔴 L1 / L2 & INFRASTRUCTURE Abstract, Blast, Neon EVM, CoinEx Smart… pic.twitter.com/lX6a2OXetF (OnchainVibe.eth ❖,❖ 🇮🇳🇮🇳 @OwnArnab · 1 Nov 2026 · View on X)

Replies under those posts were split. 42tank (@Tankothek) said on X that not every crypto failure is a hack or a rug, and that some projects simply run out of momentum, funding or reasons to keep going. Deep_₿lue_Scuba (@marais1978) said on X that it was wonderful news and that crypto needs less junk. Taunt Live (@playtaunt) said on X that shipping is one thing and sustaining it is another, while Tushar (@TusharDeFi) said on X that a strong idea means nothing without real users and sustainable revenue.

> Not every crypto failure is a hack or a rug. Sometimes a project simply runs out of momentum, funding or reasons to keep going. That side of the market gets far less attention. (42tank @Tankothek · 28 Oct 2026 · View on X)

> That is wonderful news, we need less shit in crypto. (Deep_₿lue_Scuba @marais1978 · 28 Oct 2026 · View on X)

> Survival in this market is harder than people think. Shipping is one thing, sustaining it is another. (Taunt Live | Free to Play Prediction Markets 24/7 @playtaunt · 28 Oct 2026 · View on X)

> A strong idea means nothing without real users and sustainable revenue. (Tushar @TusharDeFi · 28 Oct 2026 · View on X)

Sancet (@Millon_Sancet) said on X that Pudgy Penguins had shut down its own layer-two network and that DeFi TVL on Abstract had fallen from about $11m in late September to $2.9m, citing DefiLlama, with 15 December given as the lights-out date. That is a claim by a poster, not a figure from RootData's list.

> pudgy penguins shut down its own L2 and the abstract crowd is furious 🐧 defi tvl on abstract went from ~$11M in late sept to $2.9M now (defillama). dec 15 = lights out unpopular take: no token, no ICO, they ate 8 figures instead of dumping a coin on users. cleanest exit of the… pic.twitter.com/fSU4FWPsoF (Sancet @Millon_Sancet · 1 Nov 2026 · View on X)

### What the shutdown list means for holders

What it means for readers: if you hold tokens from a project on RootData's list, or use one of its apps, check the project's own channels for a notice and any deadline for withdrawing funds. A place on the list can mean an announced closure or months of silence, so the project's own statement is the thing to look for. The risk the list points to is real: 37 of these projects had raised more than $10m, and funding did not keep them running.

### Key numbers

| What | Figure |
| Projects RootData counts as shut in 2026 | 368 |
| Increase since RootData's 14 August count | 244 |
| Projects that announced their own shutdown | 85 (23.1%) |
| Projects RootData classified as inactive | 283 (76.9%) |
| DeFi projects on the list | 110 (29.9%) |
| Closed projects that had raised over $10m | 37 |

### Questions readers ask

#### Why does RootData count 368 crypto project shutdowns when X posts say 75 to 85?

RootData's 368 mixes two groups: 85 projects that announced their own shutdown, or 23.1%, and 283, or 76.9%, that RootData classified as closed after reviewing whether they were still operating. The X tracker posts count only announced exits, so they cover a narrower set. ChainCatcher reported that RootData reviews projects whose websites and social media have gone more than six months without an update.

#### Which sectors lost the most crypto projects in 2026?

DeFi lost the most, with 110 projects, or 29.9% of RootData's 368, according to the 2026 Crypto Dead Projects List. Infrastructure came next with 64 projects, or 17.4%, including 13 layer-one and 13 layer-two networks. According to data from RootData published by Binance News, only 85 crypto projects had ceased operations in 2026 as of 31 October. Thirty-seven of the closed projects had raised more than $10m and 94 had raised more than $1m.

#### What should holders do if their project is on RootData's list?

Check the project's own channels for a shutdown notice and any deadline for withdrawing funds. A place on RootData's list can mean an announced closure or months of inactivity that RootData classified as closed, so the project's own statement is the thing to look for. Thirty-seven of the listed projects had raised more than $10m, so funding alone did not keep them running.

### Our view

At InvestIn.News , we think the useful number in RootData's list is not 368 but 85. Only those 85 projects said out loud that they were closing; the other 283 are RootData's judgement that a project has gone quiet, reached by reviewing websites and social accounts that have not moved for more than six months. RootData's own data shows that, as of 31 October 2026, 85 cryptocurrency projects had ceased operations within the year, which makes the circulated figure of 75 to 85 closures accurate. Readers should treat the two figures as different measures, not rivals.

The sector split is the part worth keeping. DeFi accounts for 110 of the 368 projects, or 29.9%, which fits a year of thin fees and the fallout from exploits such as the $128m hit on Balancer cited in posts on X. Infrastructure follows with 64 projects, including 13 layer-one and 13 layer-two networks, a reminder that building another chain has become a crowded trade.

The $10m cohort is the sharpest warning. Thirty-seven projects that had raised more than $10m still ended up on the list, so capital did not buy survival. We would treat the next RootData update, and any project's own shutdown notice, as the test of whether this pace of closures is slowing.

How we reported this: this story draws on reporting by RootData, ChainCatcher and KuCoin and 8 public posts shown in the story. Each source is linked in the text and listed under Sources.

Sources:
- ChainCatcher: Data: In 2026, the number of cryptocurrency... (https://www.chaincatcher.com/en/article/2300964)
- KuCoin: 2026 Crypto Death Project List Reveals 368 Projects, 37 With Over $10M in Funding | KuCoin (https://www.kucoin.com/news/flash/2026-crypto-death-project-list-reveals-368-projects-37-with-over-10m-funding)
- CoinStats (@CoinStats): Post (https://x.com/CoinStats/status/2115279291743379810)
- Bijon (@Bijon_BB): Post (https://x.com/Bijon_BB/status/2115322835455623358)
- OnchainVibe.eth ❖,❖ 🇮🇳🇮🇳 (@OwnArnab): Post (https://x.com/OwnArnab/status/2116914219862093867)
- Sancet (@Millon_Sancet): Post (https://x.com/Millon_Sancet/status/2117012830008508837)
- 42tank (@Tankothek): Post (https://x.com/Tankothek/status/2115508071309140016)
- Deep_₿lue_Scuba (@marais1978): Post (https://x.com/marais1978/status/2115491686860329319)
- Taunt Live | Free to Play Prediction Markets 24/7 (@playtaunt): Post (https://x.com/playtaunt/status/2115487020168659013)
- Tushar (@TusharDeFi): Post (https://x.com/TusharDeFi/status/2115408703398834573)