Sophon Shuts Down Ethereum Layer 2 Network Due to High Operational Costs
What happened
Sophon Chain announced on October 20, 2026, that it will permanently shut down its Ethereum Layer 2 mainnet on November 30, 2026.
The Context
- Unsustainable costs: Sophon cited annual operational costs exceeding $3 million as a key reason for the shutdown.
- Funding history: The project raised approximately $70 million since 2024, but could not maintain its standalone infrastructure.
- Strategic pivot: The team will focus on consumer applications on the Coinbase-backed Base network instead of maintaining a dedicated chain.
The Number
— This figure represents the annual infrastructure and operational costs for the Sophon Layer 2 chain, underscoring the financial challenges many blockchain projects face today.
Takeaway
As the crypto landscape evolves, expect more projects to pivot or shut down due to economic pressures, reshaping the industry.
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