Three Blockchain Infrastructure Projects Shut Down Amidst Consolidation

Three blockchain infrastructure projects have closed their operations, leaving users and investors concerned about the sustainability of venture-backed solutions.

Syndicate Labs, which constructed infrastructure for Ethereum appchains and smart sequencing, shut down after five years of development. The company's co-founder, Will Papper, stated that the rollup market had shrunk dramatically, making it difficult to achieve customer and market traction.

Everclear, a cross-chain settlement protocol established in 2017 by Arjun Bhuptani, also ceased operations. Despite handling over $1.5 billion across 23 networks, the protocol failed to generate a sustainable source of income. The CLEAR token plummeted by 48% after the announcement.

Meanwhile, ZERO Network, a gasless Ethereum L2 built using ZK Stack technology, confirmed it is winding down. Users have until July 31 to withdraw their funds.

The closures are part of a broader contraction in the Layer 2 ecosystem, with rollup TVL having dropped about 36% from its October peak. The trend suggests that the L2 ecosystem will continue to consolidate around dominant players, as predicted by Cryptopolitan last year.