As the crypto market downturn drags on, related companies are carrying out restructurings and ending businesses in succession. This week alone, at least 5 crypto companies announced service shutdowns or moves into bankruptcy procedures, again highlighting worsening liquidity and profitability across the market.

Cointelegraph, a blockchain media outlet, reported on Thursday that crypto trading card platform FantasyTop, cross-chain infrastructure firm Everclear and Ethereum layer-2 project Zero Network disclosed plans that day to halt their businesses. Earlier in the same week, Syndicate Labs announced it would end operations, and bitcoin ATM operator Bitcoin Depot entered bankruptcy proceedings in the United States.

In the industry, analysis is emerging that these cases are not just isolated failures but show a trend of projects being quickly wound down in a prolonged downturn after failing to secure revenue structures and real-world usage.

FantasyTop decided to end its service in June after about 2 years of operation. The company said it failed to secure enough trading volume to sustain long-term operations. It also considered other business models such as prediction markets to survive, but said it ultimately did not reach sustainable product-market fit.

Co-founder Kiffit cited a structure that did not match the crypto market as the reason for the failure. He said, "There were more users trying to make money through card trading than users who enjoy the card game itself."

Everclear also decided to wind down Everclear Labs and its foundation, which were responsible for protocol development and operations. The company said it ultimately failed to secure a sufficient commercial base and meaningful revenue. It pursued acquisition talks but they did not materialise, and it later shifted to a partnership-focused strategy, but said funds were depleted first after it underestimated the time needed to launch an actual service.

Token prices tied to the projects also plunged immediately after the shutdown announcements. The market appears to be taking this not simply as project closures but as a sign of worsening liquidity across the crypto industry.

Ethereum layer-2 project Zero Network also decided to shut down network operations and focus its capabilities on a sister service, the crypto wallet and data platform Zerion. Co-founder Evgeny Yurtaev said, "What the world did not need was more blockchains," adding, "What users needed was a way to increase access to blockchain."

In the same week, Syndicate Labs said it would shut down after 5 years amid a shrinking rollup market. Bitcoin ATM firm Bitcoin Depot filed for bankruptcy in the United States on May 19. Bitcoin Depot cited financial burdens and regulatory pressure.

This year, conditions across the crypto industry are also worsening. Bitcoin is down about 40 percent from the $126,000 peak recorded in October last year, and many major listed crypto companies posted losses in the first quarter this year. Restructurings have continued across the industry, with more than 5,000 people tallied as laid off so far this year.

In particular, this trend is further widening the divide between areas attracting funding and those being shunned. Greg Cipolaro, head of research at New York Digital Investment Group, analysed that investor interest is focusing on services that connect traditional financial products on a blockchain basis.

In fact, market interest is concentrated in a few areas. Hyperliquid, known for perpetual crypto futures, saw continued demand, with its token price rising above $62 on Thursday. Prediction markets using blockchain, Kalshi and Polymarket, also saw increased trading, with their combined monthly transaction volume in April tallied at $23.8 billion.

By contrast, major listed crypto companies such as Bullish, BitGo, Galaxy Digital and Coinbase recorded first-quarter losses, citing deteriorating market conditions. With recent closures including Legend, Step Finance, Polynomial, Seamless and Balancer Labs added to the list, the longer the market downturn persists, the more likely it is that projects unable to prove both a user base and a revenue structure will continue to be forced out.