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Syndicate Labs shuts down as Ethereum rollup market shrinks and demand collapses.

Market News
21 May 2026
Crypto news
View Source
Bearish
pluang ai news

Syndicate Labs announced it is shutting down due to a significant decline in demand for Ethereum rollup infrastructure, with activity and capital concentrating around a few major layer-2 networks. The company cited a fundamental market shift where new rollups no longer offset closures, and custom chains are increasingly built internally rather than using platforms like Syndicate's. This decision follows a recent bridge exploit and a steep collapse in the SYND token price, though the shutdown is unrelated to the hack. The move reflects broader challenges in the crypto sector, with several DeFi projects also winding down amid weak activity and funding issues.

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