On-chain analytics company Parsec has announced its shutdown after five years of operation, a move triggered by the change in crypto trading patterns and on-chain activities.

“Parsec is shutting down,” the company stated in an X post, while its CEO, Will Sheehan, noted that the dynamics shifted markedly away from their projections.

Translation: “Parsec está cerrando”, declaró la empresa en una publicación de X, mientras que su CEO, Will Sheehan, mencionó que la dinámica se desvió notablemente de sus proyecciones.

Sheehan indicated that Parsec’s heavy investment in decentralized finance and non-fungible tokens (NFTs) did not align with the present industry direction.

“Post FTX DeFi spot lending leverage has not returned as anticipated, evolving into something unfamiliar,” he remarked, expressing his confusion over the changing on-chain activities.

Translation: “Después de FTX, el apalancamiento de préstamos DeFi no ha regresado como se esperaba, evolucionando hacia algo desconocido”.

In 2025, NFT transactions declined to approximately $5.63 billion, representing a 37% downturn from 2024’s $8.9 billion. Average transaction prices also dropped from $124 to $96.

“A Wild Journey,” Shares Parsec

Launched in January 2021 and receiving investments from notable entities like Uniswap, Parsec experienced the crypto surge when Bitcoin jumped from around $36,000 to $60,000 by April. The company expressed its gratitude in its X post, reflecting on the journey.

“It was quite the ride,” Parsec concluded.

Translation: “Fue todo un viaje”, concluyó Parsec.

Alex Svanevik, CEO of the analytics platform Nansen, acknowledged that Parsec had a successful tenure. This news comes shortly after Entropy, another crypto startup, announced its closure due to difficulties in maintaining a viable product-market fit.

Tom Farley, CEO of Bullish, forecasted a trend of consolidation within the crypto industry, predicting larger companies absorbing smaller projects to create a streamlined sector.

Bitcoin’s price has plummeted 46% from its peak of $126,100 in October to $67,246, causing a surge in Google searches regarding the cryptocurrency’s potential downfall, reaching their highest levels since the FTX incident in November 2022.