Parsec Shuts Down Citing Industry Shift Away from DeFi, NFTs
On-chain analytics provider Parsec will cease operations after five years, citing shifts in trader behavior and on-chain usage that diverged from its core focus. The firm announced the closure on X on Thursday, while CEO Will Sheehan noted that the market’s direction increasingly differed from the company’s strategic bets, and its emphasis on decentralized finance (DeFi) and non-fungible tokens (NFTs) no longer matched industry trends.
Sheehan said that DeFi spot lending leverage did not return in the same form following FTX’s collapse, evolving in ways the team understood less, and that broader on-chain activity changed in ways that were difficult to interpret.
NFT sales totaled about $5.63 billion in 2025, a 37% decline from $8.9 billion in 2024, while the average sale price fell to $96 from $124 year over year, according to data from CryptoSlam.
Parsec addresses community as it closes
Backed by investors including Uniswap, Polychain Capital, and Galaxy Digital, Parsec launched in early January 2021, shortly before Bitcoin (BTC) rose from around $36,000 to $60,000 by April.
In its X update, the company thanked users for navigating market volatility alongside it, describing the period as “quite the ride.” Alex Svanevik, CEO of on-chain analytics platform Nansen, commented that the firm had a strong run.
Industry outlook points to consolidation
The announcement follows news from crypto startup Entropy, which recently said it would wind down and return capital to investors, citing scaling challenges and difficulty achieving product–market fit.
Bullish CEO Tom Farley told CNBC on Feb. 8 that the sector is likely to undergo significant consolidation in the coming months, with larger companies acquiring more projects, potentially resulting in a less fragmented market.
Bitcoin’s price has fallen 46% from its October all-time high of $126,100 to $67,246, according to CoinMarketCap. Google Trends data over the past five years shows searches for “Bitcoin going to zero” have climbed to their highest level since the post‑FTX period in November 2022.
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