The Cardano ecosystem has recently seen a series of project closures. Following the announcement by the NFT marketplace JPG Store that it would cease operations, the on-chain data platform TapTools has also stated it will shut down within weeks, raising further concerns about the long-term viability of the network’s ecosystem.
Cardano founder Charles Hoskinson said that as market conditions remain weak and project funding becomes more difficult, more projects may exit in the second half of 2026. He noted that the ecosystem could experience a period of concentrated contraction, with some dApps and DeFi projects unable to sustain operations.
Two projects were shut down sequentially.
TapTools is one of the most commonly used dashboards by Cardano users. The platform states that rising infrastructure costs, combined with the departure of key core team members, have made it unsustainable to continue operations.
Prior to this, JPG Store also announced its closure. As one of the larger NFT marketplaces in the Cardano ecosystem, JPG Store's exit is seen as another signal of pressure on the application layer of the chain.
Funding support is progressing slowly
Hoskinson believes that the Cardano treasury and community governance system have been slow in supporting ecosystem projects. Some proposals intended to help projects secure funding and continue expanding were not approved.
He mentioned that he has previously acquired projects such as Nami and Blockfrost, but also acknowledged that not all companies can be taken over or assisted. According to his assessment, if the market does not improve, smaller teams with limited revenue will face greater pressure to survive.
TVL decreased to $118 million
As expectations for project contraction rise, Cardano’s on-chain data has also shown no significant improvement. Reports indicate that the network’s total value locked is approximately $118 million, lagging behind newer competing chains such as Aptos and Mantle.
Meanwhile, funds continue to flow toward other blockchains with faster growth and higher developer activity. Affected by the overall crypto market downturn, ADA fell approximately 9% over the past 24 hours, dropping to around $0.19.
This means Cardano is currently facing not just isolated project operational issues, but also simultaneous pressure on ecosystem funding, development resources, and user activity. Without new funding or application growth in the future, ecosystem consolidation may continue to accelerate.