Two more disappointing crypto projects are shuttered: Prices crashed

While the crypto world experienced one of the longest and most difficult bear seasons, it led to the closure of many projects, including Acala and Karura. Two DeFi projects of the Polkadot ecosystem cited the lack of liquidity in both the Polkadot and Kusama networks as the reason for their closure.

The long-standing harsh bear period in the cryptocurrency market and the shrinking capital flow pushes the projects in the Web3 world to make mandatory decisions. Finally, Acala and Karura, which are among the leading decentralized finance (DeFi) initiatives of the Polkadot and Kusama networks, announced that they have decided to terminate their activities. The teams behind both protocols stated that it had become economically impossible to continue operations after prolonged market pressure and declining token values.

Lack of Liquidity Locked Operations

According to the details shared by Acala and Karura developers, the center of the shuttering decision is the serious liquidity contraction in the networks on which they are traded. The fact that the total amount of assets locked (TVL) in the Polkadot and Kusama ecosystems has not been able to recover for a long time has failed to meet the transaction volume and financial continuity required by both protocols. The volume loss caused reserves to be depleted and the platforms to be unable to maintain their basic functions. Both projects announced that they would technically phase out their activities and put their assets into liquidation.

A New Era for the Ecosystem and Investors

This development created deep disappointment in the user base that relies on DeFi solutions, especially in the Polkadot ecosystem. Project tokens, which have suffered sharp losses in value since their peak levels, have registered irreparable losses for investors with the halt of operations. Industry observers point out that the examples of Acala and Karura show that in the altcoin world, technological infrastructure alone is not enough, and uninterrupted and deep liquidity pools are a vital necessity. The calendar determined for users to safely discharge their balances on the platforms will be clarified in the coming days.