The NFT market faces a significant infrastructure crisis as platforms and ecosystems shut down. Data shows 96% of NFT collections launched between 2021 and 2024 are inactive, with metadata often pointing to dead servers. Monthly NFT trading volume dropped from a peak of $6 billion in January 2022 to $167 million in September 2026.
Major platforms have ceased operations, including Foundation, which handled $230 million in primary sales, and Nifty Gateway, which held an estimated 650 000 NFTs in custodial wallets. The closure of Blur, once a dominant marketplace, has raised security concerns; experts advise users to revoke contract approvals to prevent potential exploits of upgradable code.
Ecosystem failures are also widespread. DeFiLlama reports that 183 out of 560 tracked blockchains have zero TVL. Since early 2026, over 15 networks, including Blast and Polygon zkEVM, have shut down. In some cases, such as the Rally platform, the shutdown of proprietary sidechains resulted in the permanent loss of access to user assets.
Gaming projects have also faced criticism for asset devaluation. Gala Games closed 'The Walking Dead: Empires' after land plots sold for up to $67 000, offering only replacement NFTs in other games as compensation. Similarly, the 'Legacy' project raised over $50 million before failing to deliver promised features, leaving early investors with significant losses.
