The team behind Kadena, a layer-1 blockchain once touted as the “blockchain for business,” announced on Tuesday that it will cease all operations and network maintenance effective immediately, citing unfavorable market conditions. The announcement sent Kadena’s native token, KDA, plunging by nearly 60% in just 90 minutes.
In a post shared on X, the Kadena team wrote that they are “no longer able to continue business operations and will be ceasing all business activity and active maintenance of the Kadena blockchain immediately.”
The message expressed gratitude to the project’s community, adding: “We regret that because of market conditions we are unable to continue to promote and support the adoption of this unique decentralized offering.”
A Once-Promising Project Faces Harsh Market Reality
Founded in 2016 by Stuart Popejoy and Will Martino, Kadena aimed to combine high transaction throughput with the security of proof-of-work consensus. Popejoy previously led JPMorgan’s Blockchain Center of Excellence, while Martino served as a technology lead for the U.S. SEC’s cryptocurrency steering committee before joining the company full-time.
The project once captured the attention of investors and developers alike. At its peak in November 2021, Kadena’s market capitalization soared to nearly $4 billion.
However, the prolonged crypto downturn, declining developer activity, and competition from major blockchains like Ethereum, Solana, and Avalanche have eroded its market position. According to CoinGecko, Kadena’s market cap now stands at $30 million.
“The shutdown highlights how difficult it is for smaller blockchain networks to build sustainable ecosystems in a crowded market,” one industry analyst observed.
Blockchain Will Continue Without the Core Team
Despite the company’s closure, Kadena emphasized that its proof-of-work blockchain will remain operational. “The Kadena blockchain is not owned or operated by the company,” the team explained. “Independent miners and validators will continue to process transactions and secure the network.”
A small team will oversee the project’s wind-down process, including the release of a new software binary to ensure uninterrupted network operation. The company also said it will consult with the community on how to manage the 83.7 million KDA tokens set to unlock in November 2029, as well as the 566 million tokens designated for mining rewards through 2139.
While the blockchain itself may survive through community efforts, the company’s shutdown marks the end of Kadena’s corporate era.