101 crypto projects have failed in 2026 with DeFi accounting for more than half, raising questions about capital allocation in the sector.
Macro & Markets ·
Through July 26, 2026, RootData tracked 101 dead crypto projects for the year, with DeFi making up more than half of the failures. Notable shutdowns included Zapper, Botanix, Step Finance, Parsec, and Odos Protocol, which faced declining onchain activity as demand concentrated around platforms like Hyperliquid and centralized exchanges. While total onchain fee generation remained elevated, the count of DeFi applications earning at least $1 million monthly in fees fell to roughly 25 or 26 in the first half of 2026 from around 33 or 34 in mid-to-late 2025, and those generating over $10 million monthly roughly halved. Analysts attributed the divergence to capital becoming more selective, favoring sustainable returns and established track records rather than pursuing incentives indiscriminately, while emerging areas like tokenized assets, stablecoins, and agentic DeFi attracted new investment.