A wave of Web3 project shutdowns has hit the cryptocurrency industry in the first quarter of 2026, with 15 major projects announcing closures across DeFi, NFTs, infrastructure, and blockchain services. Notable shutdowns include MilkyWay (liquid staking protocol), ZeroLend (decentralized lending), Nifty Gateway (NFT marketplace), Polynomial (DeFi derivatives), and Leap Wallet (Cosmos ecosystem wallet). The closures span multiple categories including GameFi projects like Bloktopia and infrastructure services like Dmail's decentralized email protocol. Common reasons cited include financial pressure, declining liquidity, loss of competitiveness, and inability to build viable business models amid high operational costs. The shutdowns reflect challenging market conditions and suggest a consolidation phase where only well-funded, resilient projects can survive. This trend indicates shifting venture investment priorities toward larger, more established projects rather than experimental or smaller-scale initiatives.