- Hoskinson warned that more Cardano DeFi projects and dApps could shut down in H2 2026.
- He blamed slow governance, limited commercialization, and a lack of community support.
- The ADA token plunged to around $0.149, its lowest level since early 2021.
Cardano founder Charles Hoskinson said more DeFi applications and decentralized apps could shut down during the second half of 2026 as weak markets continue to pressure builders across the ecosystem.
His warning came after analytics platform TapTools announced plans to wind down operations. Earlier, JPG Store, Cardano’s largest NFT marketplace, also decided to close.
Hoskinson said he had warned at the beginning of the year that prolonged market weakness would force some projects out of business. He now expects further consolidation across the network.
According to him, smaller teams with limited revenue are facing rising pressure, and more closures are likely before conditions improve.
Funding and Governance Problems Remain
Hoskinson pointed to deeper issues than market prices alone. He said Cardano’s treasury system and governance process have not moved fast enough to provide support to ecosystem companies.
Several proposals aimed at helping projects secure funding failed to gain enough support. Hoskinson noted that he personally stepped in to acquire wallet provider Nami and infrastructure company Blockfrost, but said such interventions cannot save every business.
He further added that he does not control Cardano’s treasury, governance keys, or protocol parameters, meaning he cannot force funding decisions or direct resources toward struggling teams.
According to the crypto entrepreneur, commercialization, ecosystem funding, and governance remain some of Cardano’s biggest challenges.
Related: Cardano Price Prediction: ADA Hits 5.5-Year Lows As Hoskinson Takes a Break
TapTools and JPG Store Closures Raise Concerns
TapTools, one of the most-used analytics platforms among Cardano traders, said it would shut down because of rising infrastructure expenses and the departure of key technical staff.
Its closure followed the shutdown announcement from JPG Store, which had long been Cardano’s largest NFT marketplace. The back-to-back losses have raised concerns about the ability of ecosystem businesses to survive during prolonged bear market conditions.
Hoskinson said some of these companies could potentially have been preserved through treasury funding or acquisitions, but community appetite for using treasury resources has remained limited.
ADA Falls to Multi-Year Lows
The warning arrived as ADA suffered one of its deepest corrections. Cardano’s token dropped more than 12% in 24 hours and traded near $0.149, levels last seen in early 2021.
The decline erased much of the gains from the previous cycle, during which ADA had reached roughly $3.10. Cardano’s total value locked has also fallen to around $90.97 million, leaving the network behind newer chains such as Aptos and Mantle.
Weakness across the broader crypto market added to the pressure. Bitcoin fell more than 6%, while the overall crypto market capitalization declined nearly 6%.
Everstake, one of Cardano’s largest staking providers, acknowledged the severity of the crash. The company argued that market prices often disconnect from underlying protocol activity during bear markets and reiterated its long-term commitment to the ecosystem.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.