Ethereum Layer 2 Zero Network Shuts Down as Crypto Winddowns Rise
The Ethereum Layer 2 ecosystem is witnessing a wave of closures. Zero Network, a prominent gasless Ethereum Layer 2 rollup, announced on Thursday that it is officially winding down operations after 1.5 years of service.
The development team shared the news on social media platform X. They revealed that the decision was made to redirect internal resources. Moving forward, the team will focus entirely on growing Zerion’s API and wallet services.
Zero Network originally launched in November 2024. It was designed as the first EVM-compatible (Ethereum Virtual Machine), fully gasless network built to simplify the Web3 user experience.
Why Zero Network is Ceasing Operations
While the team still believes in a gasless future, they admitted that running an independent blockchain was not the right approach.
The company stated that the best path forward is to focus resources where they have the biggest impact. By shifting focus back to their core products, they aim to better serve the people who use Zerion daily.
Zerion, founded in 2016, is well-known for its self-custody Zerion Wallet. The wallet is widely used across mobile devices and web browser extensions.
Action Plan and Deadlines for Zero Network Users
The team reassured the community that all user assets remain completely secure. However, users must take immediate action to move their funds.
- Deposits Suspended: Bridging assets into the Zero Network has already been turned off.
- Withdrawal Deadline: Users must bridge their NFTs, ETH, and other crypto tokens out of the network by the end of July.
A Growing Wave of Crypto Protocol Closures
Zero Network is not alone in its exit. It joins a growing list of crypto projects and infrastructure providers that have shut down within a 48-hour window.
Other recent closures in the digital asset space include:
- Everclear: The cross-chain infrastructure startup announced the complete shutdown of its core UI, protocol, foundation, and research lab.
- Syndicate Labs: The Ethereum infrastructure provider announced its closure on Wednesday.
- Fantasy.top: The popular crypto-based card game also officially shuttered operations this week.
Industry Note: Several of these platforms explicitly pointed to challenging and adverse market conditions as the primary reason for ending their operations.
