On-chain analytics firm Parsec is closing down after five years, as crypto trader flows and on-chain activity no longer resemble what they once did.
“Parsec is shutting down,” the company said in an X post on Thursday, while its CEO, Will Sheehan, said the “market zigged while we zagged a few too many times.”
Sheehan added that Parsec’s primary focus on decentralized finance and non-fungible tokens (NFTs) fell out of step with where the industry has now headed.
“Post FTX DeFi spot lending leverage never really came back in the same way, it changed, morphed into something we understood less,” he said, adding that on-chain activity changed in a way he never understood.
NFT sales reached about $5.63 billion in 2025, a 37% drawdown from the $8.9 billion recorded in 2024. Average sale prices also declined year over year, falling to $96 from $124, according to CryptoSlam data.
“Quite the ride,” Parsec says
Parsec, which had received investment from major industry players such as UniSwap, Polychain Capital, and Galaxy Digital, launched in early January 2021, just months before Bitcoin (BTC) surged from around $36,000 to $60,000 by April.
The company added in its X post that they are “eternally grateful to those that traversed the ups and downs on-chain.”
“It was quite the ride,” Parsec said.
Alex Svanevik, the CEO of on-chain analytics platform Nansen, said that Parsec “had a great run.”
Crypto industry may be heading for consolidation
It comes just weeks after crypto start-up Entropy announced it is closing down and returning funds to investors, citing scaling issues and a struggle to find product-market fit.
Bullish CEO Tom Farley predicted during an interview with CNBC on Feb. 8 that the industry will see a significant consolidation in the coming months with more projects snapped up by larger companies, which may lead to a much less fragmented sector overall.
Related: Bitcoin ETFs still sit on $53B in net inflows despite recent outflows: Bloomberg
Bitcoin’s price has declined 46% from its October all-time high of $126,100 to $67,246, according to CoinMarketCap.
Google searches for “Bitcoin going to zero” have surged to their highest level since the post‑FTX panic in November 2022, according to Google Trends data for the past five years.
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