On-chain analytics firm Parsec is shutting down after five years as crypto trader flows and on-chain activity no longer resemble what they once were.
“Parsec is going out of business,” the company said in an X-rated article Thursday, while its CEO, Will Sheehan, said “the market has zigzagged while we zigzagged a little too often.”
Sheehan added that Parsec’s primary focus on decentralized finance and non-fungible tokens (NFTs) was no longer aligned with the current direction of the industry.
“Post FTX DeFi spot lending leverage never really came back the same way, it changed, morphed into something we understand less,” he said, adding that on-chain activity changed in ways he never understood.
NFT sales reached approximately $5.63 billion in 2025, a 37% decline from the $8.9 billion recorded in 2024. Average sales prices also declined year-over-year, from $124 to $96, according to CryptoSlam data.
“Quite a journey,” says Parsec
Parsec, which had received investments from major industry players such as Uniswap, Polychain Capital, and Galaxy Digital, launched in early January 2021, just months before Bitcoin (BTC) rose from around $36,000 to $60,000 in April.
The company added in its X article that it is “eternally grateful to those who have made it through the ups and downs of the chain.”
“It was quite an adventure,” Parsec said.
Alex Svanevik, CEO of on-chain analytics platform Nansen, said Parsec “has had a great run.”
The crypto industry could be heading towards consolidation
This comes just weeks after crypto startup Entropy announced its closure and return of funds to investors, citing scaling issues and difficulty finding product-market fit.
Bullish CEO Tom Farley predicted during an interview with CNBC on February 8 that the sector would see significant consolidation in the coming months with more projects taken over by larger companies, which could lead to a much less fragmented sector overall.
The price of Bitcoin is down 46% from its October all-time high of $126,100 to $67,246, according to CoinMarketCap.
Google searches for “Bitcoin going to zero” reached their highest level since the post-FTX panic in November 2022, according to Google Trends data for the past five years.
