DappRadar Shuts Down After Failing to Turn a Profit, RADAR Token Witnesses Sell-Offs

DappRadar, the Web3 protocol that offers real-time insights and analytics of decentralized applications (dApps), announced via X that it is permanently shutting down due to financial unsustainability. In the coming days, the platform will halt the tracking services and begin the winding-down process. 

DADAR Token, which serves as the utility and governance token of the DappRadar ecosystem, has witnessed huge sell-offs following the announcement. It is currently 40% down today, reaching the all-time low of $0.00062.

Founded in February 2018, DappRadar has grown into a leading blockchain analytics platform, tracking 18,111 dApps and 93 chains, and attracting 1 million users monthly. For the same reason, many followers have expressed their confusion about such a popular Web3 platform becoming unprofitable.

Investors Dump RADAR After DappRadar Reveals Shutdown Plan

The RADAR token experienced a significant decline following the shutdown announcement, dropping to a market capitalization of $ 600,000. As a token that solely depends upon the DappRadar ecosystem, it is unlikely for it to exhibit another uptrend. However, a community takeover of the platform will likely create optimism for RADAR again, but it is still uncertain.

Skirmantas & Dragos, DappRadar founders, stated that they hope new Web3 users will fill the gap created by the network’s shutdown. “There are still decisions to be made, and we want the community to be part of that discussion. The mission to help people explore and understand decentralized applications shouldn’t end here. The Web3 space still needs a home for discovery, and we hope someone will fill that gap and carry the torch forward,” they added to the shutdown statement.

Why DappRadar Failed to Turn a Profit? Followers Wonder

The official announcement states that running a platform of that scale had become financially unsustainable in the current environment, and after exploring every option, they had to make the difficult decision to wind things down. However, various Web3 users are confused regarding the shutdown of such a popular, large-scale analytics platform where millions of users flock. According to them, it didn’t seem like the site would require too much effort or money to maintain.

Ironically, the increase in scale itself became a core reason for the shutdown. The founders expressed that running such a large-scale analytics service became financially unsustainable despite its seven years of operation. In addition, the current fluctuations in the market acted as a catalyst. The sudden sell-offs in the RADAR token also reflect the uncertainty in the project.

The Bottom Line: DappRadar Shutting Down Does Not Mean dApps Fail

While the end of DappRadar after seven years of service is a significant event in the realm of decentralized applications, it does not signify that the dApps era is over. The founders themselves pointed out that dApps are in a transformative state, and they will continue helping users understand and build advanced dApps. We will likely witness the best among these applications getting mainstream attention in the near future, as the world has begun integrating blockchain technology and decentralization into daily lives.

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