Five Crypto Firms Shutter in One Week Amid Market Strain

The crypto sector faced a grim milestone this week, as five notable companies announced shutdowns amid continued market headwinds. From infrastructure protocols to trading platforms, the closures highlight mounting financial strain, declining investor interest, and sector-specific challenges.

Among the companies winding down is Everclear, a cross-blockchain infrastructure startup backed by Pantera. The protocol announced on May 21 that it would cease operations, citing unsustainable revenue and a runway that ran out before key partnerships materialized. Token prices tied to Everclear plummeted after the announcement, underlining waning investor confidence.

Earlier in the week, Bitcoin Depot, a major crypto ATM operator, filed for Chapter 11 bankruptcy on May 18 and shuttered its network of 9,276 ATMs. The company attributed its downfall to regulatory pressures and financial strain, marking a significant retrenchment in crypto infrastructure accessibility.

Also joining this week’s wave of closures is Tapp Exchange, a decentralized trading platform on the Aptos network, which confirmed it will cease operations by May 31. Fantasy.top, a crypto trading card platform, and ZERO Network, an Ethereum layer-2 blockchain, both announced on May 22 that they would wind down due to challenges in achieving sustainable market fit.

The closures come amid a prolonged downturn in the crypto market. Bitcoin (BTC), the market’s bellwether, traded at $77,685 on May 22, down 40% from its October 2025 peak of $126,000. The decline reflects broader macroeconomic pressures, regulatory uncertainty, and sluggish user activity, all of which have directly impacted the revenues of crypto firms. Notably, more than 5,000 crypto industry jobs have been cut in 2026 alone, as companies scramble to reduce costs.

The difficulties aren’t confined to startups. Public crypto firms like Coinbase, Galaxy Digital, and BitGo have all posted losses in their Q1 earnings, reflecting the strain across the sector. Meanwhile, DeFi protocols face additional challenges, including a surge in exploit activity—totaling over $600 million in April 2026 alone—and ongoing struggles to find viable economic models.

Despite the bleak outlook for some segments of the market, areas like prediction markets and perpetual futures trading have shown resilience. Platforms such as Hyperliquid, which specializes in crypto derivatives, have experienced continued interest, with Hyperliquid’s token trading above $62 this week. Prediction markets like Kalshi and Polymarket also saw record combined volumes of $23.8 billion in April, according to Token Terminal.

Still, the wave of closures underscores the narrowing of opportunities in the crypto sector. As NYDIG research analyst Greg Cipolaro noted earlier this year, investor interest has increasingly concentrated on blockchain applications that directly extend traditional financial products—leaving less room for experimental or niche ventures.

For traders, the current environment demands caution. The market’s volatility, coupled with rising regulatory challenges, underscores the need to closely monitor project fundamentals and macroeconomic developments. With Bitcoin down 0.35% over the past 24 hours and the price hovering well below its highs, the coming months could test the resilience of even the most established crypto companies.

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