The year of shutdowns: which networks are winding down in 2026?

Abstract is the latest L2 chain to join the long series of shutdowns in 2026. Which networks are winding down in the past year, and how will this affect users? 

Abstract announced its shutdown in early October, but its decision is not unusual. In 2026, a long list of networks announced a faster or a more abrupt sunsetting. Just before Abstract, Blast announced it would wind down by the end of October. 

The main reason for network shutdowns is diminished usage and liquidity. At its peak, Abstract secured over $291M in value, losing over 90% just before its shutdown. Abstract still carries over 93K weekly active addresses and 1.64M weekly transactions. The network will operate for bridging and migrations until December 15. 

Abstract joined the list of shutdowns, instead of launching a token

Abstract was a tokenless platform, and decided against holding a TGE to salvage the chain’s value. In the past two years, Abstract has also been supported by Igloo, Inc., the creator of Pudgy Penguins. 

Luka Netz, the founder of Pudgy Penguins, announced Abstract will wind down, and all attention will go toward the Penguins community. 

‘After losing tens of millions of dollars over two years, building consumer products, assembling an all-star team, onboarding some of the biggest brands in the world, and building a community of millions, we still had not found product-market fit,’ said Netz in an X statement.

Abstract attempted to gain ground as a chain for consumer crypto, but stagnated due to limited DeFi projects and limited usage.

After the Abstract shutdown announcement, Polygon caused a conflict by posting its own statement that it will not shut down its network. Polygon’s founder, Sandeep Nailwal, stated he had no intention of subtweeting Abstract or directing enmity toward the project. 

For now, Polygon has been saved by being used as a payments network, while also carrying traffic for Polymarket. However, Polygon still wound down its ZKEvm version, which did not manage to grow its traffic oc liquidity. 

Which networks shut down in 2026?

Blast is one of the high-profile shutdowns in the past year. The network will operate until October 26 to allow users to move their funds. Coinbase announced it would still work with BLAST tokens until October 20. 

Lisk is another chain that will shut down on October 31 and continue as an L2 Ethereum-based rollup. For years, Lisk operated as an independent L1, with significant costs and a highly involved process to select its 100 validators. An L2 network may have lower costs while preserving the Lisk brand. 

Other notable shutdowns include Kadena, which faced decreasing developer activity and usage. Harmony Protocol ceased core development and active chain maintenance after the $100M Horizon Bridge hack.

Zero Network shut down due to low usage and practically no economic activity. Sophon shut down for the same reason, including its unsustainable gas economics. 

Other chains like Loopring and Movement shut down their original networks and attempted a restructuring with new technologies. 

The network shutdowns are not necessarily a negative sign for L2 usage. In the past months, the share of L2 economic activity recovered to over 30%. 

Improved app revenues came from a handful of widely used chains, especially Arbitrum. At the same time, liquidity did not spread as intended through cross-chain technology, leaving some networks with virtually no activity. 

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