Something unusual is unfolding in crypto. Over 20 funded projects have shut down in Q1 2026, not scams or rug pulls, but real platforms that couldn’t survive current market conditions. Data highlighted by Defi Scribbler shows this is less about failure and more about a market reset.

Projects That Shut Down or Scaled Back

Here’s a quick look at the major names and what happened:

• Magic Eden Wallet shut down its wallet product and reduced its multi-chain focus to double down on Solana.
• Leap Wallet confirmed a full shutdown, exiting the market entirely by late May.
• Bit.com closed its derivatives exchange operations amid declining activity.
• Dmail, a Web3 messaging platform, ceased operations after struggling to retain users.
• Step…