Three blockchain infrastructure projects shut down on the same day as Layer 2 consolidation accelerates

Three blockchain infrastructure projects — Syndicate Labs, Everclear (formerly Connext), and ZERO Network — shut down on May 21, highlighting accelerating consolidation in the Layer‑2 sector and pressure on mid‑tier infrastructure. Rollup TVL has fallen about 36% from an October 2025 peak above $50 billion, with Arbitrum, Base and OP Mainnet capturing roughly 75% of activity. The closures underscore revenue and user‑base challenges even for venture‑backed teams: Everclear’s CLEAR token plunged ~48% on the news, and ZERO Network set a July 31, 2026 withdrawal deadline. The trend suggests the market is moving toward a handful of dominant L2 ecosystems, reducing demand for shared rollup infrastructure.