Cosmos Projects Shutting Down
Multiple Cosmos ecosystem projects have shut down in 2025. The primary reasons cited for these closures include a lack of growth, insufficient revenue, and developer attrition. These shutdowns have impacted key sectors within the Cosmos network, such as DeFi, NFTs, and lending.
The Cosmos blockchain, once recognized for its interoperability and vibrant ecosystem, is currently experiencing a downturn. In 2025, an increasing number of Cosmos-based projects have officially ceased operations, prompting concerns about the network's long-term sustainability.
According to crypto analyst @y_cryptoanalyst, significant projects that have stopped their operations include Comdex, Kujira, Evmos, Picasso/Composable, Quasar/Tower, and Stride. These platforms were integral to crucial areas like decentralized exchanges (DEXs), DeFi, NFTs, lending protocols, and liquid staking tokens (LSTs).
Each of these projects offered distinct value propositions to the Cosmos ecosystem but ultimately encountered challenges that proved too difficult to overcome.
Reasons Behind Project Closures
A common thread among these closures is a combination of factors: low user growth, inadequate revenue generation, and a decline in developer activity. While the broader cryptocurrency market has shown signs of recovery, these specific projects failed to achieve substantial traction or maintain consistent innovation.
For example, some platforms, despite initial positive momentum, could not effectively compete with established projects on other blockchains such as Ethereum or Solana. Others struggled with monetization strategies or expanding their user base, which consequently led to a decrease in developer interest and, ultimately, their shutdown.
The decentralized nature of Cosmos, while a core principle, can also present challenges in centrally coordinating resources or marketing initiatives. This may have negatively impacted the visibility and growth prospects for smaller or newer projects within the ecosystem.
Implications for the Cosmos Ecosystem
This series of shutdowns does not necessarily signal the end of Cosmos, but it does serve as a significant warning. These closures highlight underlying structural issues within the ecosystem, such as limited network effects and fragmented liquidity.
Looking ahead, the Cosmos community may need to re-evaluate its strategies for supporting developers and fostering innovation. Enhanced funding mechanisms, improved user onboarding processes, and greater ecosystem-wide collaboration could be crucial in mitigating further project losses.
For Cosmos to effectively compete with ecosystems that offer tighter integration and more aggressive funding models, such as Ethereum Layer 2 solutions, it must adapt and evolve rapidly.