As announced on July 11, 2025, Inception Protocol halted operations due to liquidity issues and lacks a product-market fit. Despite backing from venture firms and support within the EigenLayer ecosystem, the project’s struggles highlight ongoing difficulties faced by shared security models.
Following the closure, there were no significant shifts involving Ethereum (ETH), although it continues to experience volatility with a recent trading volume down by 25.58%. The DeFi sector remains under scrutiny for sustainability challenges and potential further closures.
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