Crypto’s Changing Landscape Forces On-Chain Firm Parsec to Shut Down After 5 Years
On-chain analytics company Parsec is calling it quits after five years in business – a sign that one slice of the crypto tools market is no longer suited to merchant needs.
Its CEO, Will Sheehan, sums it up clearly: the company used to build an obsolete version of crypto in the same way.
“Parsec is shutting down,” the company disclosed Thursday. “The market is bent when we’re doing very few rounds,” Sheehan said.
Shift In On-Chain Demand
Parsec’s focus on decentralized and aggregatable finance has left it open to where user behavior is changing. NFT volumes have been reduced.
Reports say sales will drop to around $5.63 billion by 2025, a 37% drop from close to $9 billion last year, and average prices will drop from $124 to $96, according to CryptoSlam.
That kind of drag makes implementing a niche analytics product difficult, especially if a few people are chasing quick profits.
It’s the end of the parsec road I’m afraid. The market is zigzagging while we zagged quite a few times
A little parsec history for generations, At the beginning of 2020 I started charting the uniniswap *v1* charts as a side project, this entered the DeFi repository during the DeFi summer and …
— Will Sheehan (@wilburforce_) February 19, 2026
Some Support, Not a Lifeline
The implementation had major supporters in early 2021. Investors include Uniswap, Polychain Capital, and Galaxy Digital. That reliability was important, but it did not guarantee a stable market.
After the collapse of FTX, certain types of high-risk lending and margin work did not return in the same way, and trading patterns changed.
Funding And Time Did Not Guarantee Survival
The space is crowded now. Major platforms offer statistics on a scale while few focused tools try to keep professional users. Nansen’s leader, Alex Svanevik, said Parsec had “a great run,” which sounded like a decent line; it was realizing that building boom times can leave you exposed when the flow cools.
At the same time, other initiatives have backfired. Reports say that Entropy is also on the decline, and Tom Farley has predicted a wave of consolidation as money and users concentrate in fewer areas.
Crypto Price Action
Amidst this market freeze, Bitcoin has been using a cautious pattern. It went under key standards and received support packages.
Geopolitical headlines have pushed traders away from safety at times, leaving small trading windows where prices can fluctuate more than usual. The result is a silent commercial picture of speculative properties, dependent on bold bets and deep insolvencies.
What’s Next in the Industry
What happens now will work. Some niche tools will be bought, others will close, and a few will be repurposed to serve larger clients or different data needs.
Migration is not the end of DeFi or collective; they still work, but they are smaller and more specific to who uses them.
Capital is choosier. Products developed during the most noisy periods of the previous cycle are tested in a calm market.
In short, this is a reset. A number of firms will be acquired, some ideas will be reworked, and many groups will have to prove their relevance to the current set of users. Those who can match where the flow is actually going will have a much better chance of continuing to run.
Featured image from Unsplash, chart from TradingView
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