Relay_Station / Zone_39
TECH
23.05.2026
Three Major Web3 Infrastructure Projects Cease Operations
Everclear, previously known as Connext, was a foundational element in the cross-chain settlement space. Established in 2017 with early backing from the Ethereum Foundation, it facilitated the transfer of over $1.5 billion across 23 different networks. The protocol boasted monthly clearing volumes exceeding $500 million, yet this extensive activity failed to translate into a sustainable revenue stream. Its abrupt closure means that a significant piece of battle-tested, trust-minimized cross-chain infrastructure is now gone, forcing ecosystem participants to re-evaluate their reliance on similar bridging solutions.
The discontinuation of Everclear's operations resulted in a nearly 50% plummet in its CLEAR token, dropping to $0.0002332 within hours of the announcement. This price reaction highlights the market's swift repricing of infrastructure projects when their underlying development and operational support vanish. The technical challenge of achieving true interoperability, while maintaining security and decentralization, has long plagued the industry, and Everclear's struggles, despite its technical achievements, suggest that operational complexity and economic viability remain formidable hurdles for cross-chain protocols.
ZERO Network, a gasless Ethereum Layer 2 built by the wallet company Zerion, also confirmed its winding down. Utilizing ZK Stack technology, ZERO Network aimed to offer a frictionless user experience by abstracting away transaction fees. Users have been given until July 31 to withdraw their funds, though the network had already experienced operational challenges, including a three-week period in January where it ceased producing blocks before a brief relaunch. Zerion, which secured $22.5 million in total funding, now plans to refocus on its core wallet and API products, abandoning its Layer 2 ambitions.
The failure of ZERO Network brings into sharp relief the challenges faced by newer ZK-rollup ventures, particularly those focused on consumer adoption without a clear path to monetization or a strong, differentiated value proposition beyond "gasless transactions." While ZK technology offers significant scaling benefits and cryptographic guarantees, the competitive landscape for Layer 2s has intensified dramatically. Networks like Base and Arbitrum now dominate in Total Value Locked (TVL) and daily active users, absorbing a substantial majority of Ethereum-related transaction volume. This concentration of activity makes it exceedingly difficult for smaller or less-established Layer 2s to gain critical mass and generate sufficient protocol revenue to cover their operational costs.
Syndicate Labs, a developer platform focused on launching on-chain communities and investment clubs, also announced its shutdown. While less directly a core "infrastructure" layer like Everclear or ZERO Network, Syndicate Labs represented a critical piece of the Web3 developer toolkit, providing smart contract templates and infrastructure to enable new forms of decentralized organizations and collective ownership. Its closure removes a significant resource for creators and innovators seeking to build social and financial primitives on-chain.
The trend extends beyond these three projects. Lattice, the blockchain gaming infrastructure team behind the Redstone Layer 2 network, announced its phased shutdown in April, with Redstone ceasing service on May 16. Lattice cited a "failure to achieve a sustainable business model" after five years of operation. Other recent closures include Solana DeFi aggregator Step Finance, derivatives protocol Polynomial, Balancer Labs following a major hack, and Base-based lending protocol Seamless Protocol.
This spate of shutdowns underscores a brutal truth: the era of speculative growth fueled by abundant venture capital alone is over for many Web3 infrastructure projects. The market is demanding tangible utility, defensible revenue models, and robust security. Layer 2 ecosystems are consolidating around a few dominant players, and niche cross-chain solutions must demonstrate exceptional technical differentiation and economic sustainability to survive. The capital that flowed generously between 2021 and 2022 is now scrutinizing returns, prioritizing projects that demonstrate genuine product-market fit and a clear path to generating real economic activity.
The implications for the broader Web3 ecosystem are profound. While the closures are a painful correction, they might force a re-evaluation of design choices, funding models, and the long-term viability of various decentralized infrastructure components. The question now shifts from merely "can we build it?" to "can we sustain it, and for whom?"
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