Ethereum Layer 2 Zero Network to Shut Down, Users Must Withdraw Funds by July 2026

6 hour ago 4 sources neutral

Key takeaways:

  • Zero Network’s shutdown signals accelerating consolidation in the oversaturated Ethereum Layer 2 sector.
  • Investors should monitor struggling L2 tokens for potential devaluation as projects wind down.
  • Zerion’s pivot to wallet services highlights infrastructure monetization as a safer bet than speculative rollups.

Zero Network, the gasless Ethereum Layer 2 rollup, will cease operations after 1.5 years, with all users required to bridge their ETH, ERC-20 tokens, and NFTs off the network before July 31, 2026. The shutdown, announced by parent company Zerion, follows a strategic shift toward deepening investment in the core Zerion wallet and API services.

Launched in November 2024 as the first EVM-compatible fully gasless rollup, Zero Network aimed to eliminate transaction fees and streamline user onboarding. Despite its innovation, maintaining a standalone chain proved unsustainable. Zerion, founded in 2016 as a self-custody wallet, decided to reallocate resources to enhance wallet functionality and API performance, aligning with a long-term sustainable growth plan. Bridging into the network has already been suspended, and the platform is providing clear guidance for safe asset transfers. Users can still access all funds during the winding-down period and are urged to verify destination addresses carefully.

The closure reflects a broader trend of crypto projects scaling back amid challenging market conditions, with cross-chain infrastructure platform Everclear and Ethereum infrastructure provider Syndicate Labs also recently shutting down. Zerion’s move underscores the difficulty of sustaining independent Layer 2 ecosystems even for well-funded teams, and highlights a pivot toward core product refinement over experimental scaling solutions.

Previously on the topic:
yesterday / 09:04
Syndicate Labs Shuts Down as Ethereum Rollup Market Collapses
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