Cardano founder Charles Hoskinson has warned that more projects building on the blockchain could fail in the second half of 2026 due to severe funding constraints and difficult market conditions. His comments follow the impending shutdown of the analytics platform TapTools and the earlier closure of the NFT marketplace JPG Store. The network’s total value locked has fallen to approximately $119 million, while the price of ADA has decreased significantly, adding pressure to the ecosystem.
Cardano founder Charles Hoskinson warned that more projects on the network could struggle or shut down in the latter half of 2026 due to funding shortages and harsh market conditions. He issued this caution following the announced closure of the analytics platform TapTools.
TapTools is shutting down due to soaring infrastructure costs and the loss of key team members. This follows the earlier shutdown of JPG Store, Cardano’s largest NFT marketplace, due to ongoing business problems.
Hoskinson stated he had previously warned that without new funding options, some projects would find it hard to survive. “We’ll see people fall like there’s no tomorrow,” he said regarding the difficult market.
He noted that Cardano’s treasury and governance systems are too slow to assist builders, with many aid proposals going unapproved. Hoskinson expects more dApps and DeFi projects to fail, leading to consolidation within the ecosystem.
Network metrics show significant strain, with Cardano’s total value locked declining to around $119 million. The native token ADA is trading at $0.1950, representing a 10% drop over 24 hours according to CoinMarketCap.
