In 2025, the Cosmos blockchain is facing significant challenges as multiple projects within its ecosystem have officially shut down. This decline has raised serious concerns regarding the long-term sustainability and health of the network, which was once celebrated for its innovative approach to interoperability and decentralized technology.
Among the notable casualties are Comdex, Kujira, Evmos, Picasso/Composable, Quasar/Tower, and Stride. These platforms were actively involved in critical areas such as decentralized exchanges (DEXs), decentralized finance (DeFi), non-fungible tokens (NFTs), lending, and liquid staking tokens (LSTs). Despite their unique contributions and initial promise, each of these projects ultimately encountered insurmountable difficulties, leading to their closures.
The reasons behind these shutdowns point to a combination of factors, including stagnant user growth, inadequate revenue generation, and a decline in developer engagement. Although the broader cryptocurrency market has seen some recovery, these specific projects have struggled to gain traction or maintain innovation amidst fierce competition from rival blockchains like Ethereum and Solana. Many of them failed to expand their user bases or explore effective monetization strategies, which in turn led to diminished interest from developers and stakeholders.
Additionally, the decentralized nature of Cosmos presents both opportunities and obstacles. This ethos, while beneficial in many aspects, complicates the central coordination of resources and marketing, which could hamper visibility and growth, especially for smaller or newly launched projects.
The series of project shutdowns sends a clear signal regarding deeper structural issues within the Cosmos ecosystem. Problems such as limited network effects and fragmented liquidity have emerged, making it imperative for the community to reassess its approach to nurturing and incentivizing innovation. There may be a pressing need for enhanced funding mechanisms, better user onboarding strategies, and increased collaboration across the ecosystem to avert further losses.
As Cosmos seeks to maintain its position in a competitive market that includes more integrated and aggressively funded ecosystems—like Ethereum Layer 2 solutions—it must be prepared to adapt swiftly. The current turmoil could serve as a turning point for both reflection and rejuvenation in the Cosmos community.
