Cardano founder Charles Hoskinson says more DeFi projects could shut down in 2026 amid funding and market pressures. TapTools will close after executive departures and rising infrastructure c
Cardano founder Charles Hoskinson warned that more decentralized finance projects could shut down during the second half of 2026 as funding pressures and weak market conditions continue. His comments followed the decision by analytics platform TapTools to wind down operations, with Hoskinson saying governance and commercialization challenges have slowed support for ecosystem builders.
According to TapTools, the platform will close within weeks after several senior executives departed and infrastructure costs continued to rise. The company said its latest backend developer also left, creating technical gaps that could not be replaced quickly.
The shutdown adds to a difficult period for Cardano projects. Earlier, NFT marketplace JPG.Store also ceased operations after limiting several platform features.
Hoskinson said he had warned at the start of the year that some businesses could fail if new funding mechanisms were not introduced. He added that market conditions remain difficult and could trigger a broader wave of closures.
As attention shifted to ecosystem support, Hoskinson pointed to Cardano’s governance structure as a major obstacle. According to him, proposals designed to help projects secure funding and continue operations did not receive approval.
He said he personally helped acquire projects including Nami and Blockfrost. However, he noted that not every business can receive that kind of support.
Hoskinson also stressed that he does not control Cardano’s treasury, governance keys, or protocol parameters. He said those decisions remain in the hands of the wider governance process.
At the same time, several Cardano network indicators remain weak. Total value locked is between roughly $118 million and $123.85 million, placing the network behind several competing blockchains.
Hoskinson also discussed what he described as an “extreme option” if reforms fail. According to his comments, that could involve launching a new Cardano through a proof-of-burn model to reset tokenomics and institutional funding mechanisms.
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