Parsec Closes Trading Amidst Crypto Market Volatility
On-chain analytics firm Parsec is shutting down after five years, as crypto trader flows and on-chain activity are no longer what they used to be.
The company told X-Post on Thursday that “parsec is closed” and CEO Will Sheehan said “the market is saturated”.
Sheehan added that Parsec's primary focus on decentralized finance and intangible tokens (NFTs) has fallen short of where the industry is headed now.
“Post FTX DeFi lending never quite came back the same way, it changed, it changed into something we understand,” he said, adding that activity on the chain changed in an unfathomable way.
NFT sales are expected to reach $5.63 billion by 2025. It represents a 37% decrease from the $8.9 billion in 2024. The average sale price also fell year-over-year, down to $96 from $124, according to CryptoSlam data.
“It's quite a journey,” says Parsec.
Parsec, which has received investment from major industry players such as Uniswap, Polychain Capital and Galaxy Digital, launched in early January 2021. Bitcoin (BTC) rose from $36,000 to $60,000 months ago in April.
The company said in an X post that it is “eternal grateful to those who have gone through the ups and downs on the chain.”
“It's been quite the journey,” Parsek said.
“It's had a great run,” said Alex Svanevic Parsec, CEO of Chain Analytics Platform.
The crypto industry may be headed for consolidation.
This comes just weeks after crypto startup Entropy announced it was shutting down and returning funds to investors, citing scale issues and a struggle to find product market fit.
Bullish CEO Tom Farley predicted in a Feb. 8 interview with CNBC that the industry will see significant consolidation in the coming months with more projects taken up by large companies, which could lead to a more fragmented sector overall.
Related: Bitcoin ETFs Still Sitting at $53B Despite Recent Outflows
According to CoinMarketCap, bitcoin's price has fallen 46 percent from an all-time high of $126,100 to $67,246 in October.
Google searches for “Bitcoin going to zero” have risen to the highest level since the post-FTX panic in November 2022, according to Google Trends data for the past five years.
Magazine: Bitcoin May Take 7 Years to Upgrade to Post-Quantum: BIP-360 Co-Author
