Kadena Shutdown: KDA Token Crashes 60% as Foundation Ceases Operations in 2025

The blockchain world was rocked on October 21, 2025, when the Kadena organization announced an immediate shutdown of all business operations and active maintenance of its Layer-1 network. This abrupt end to the platform’s corporate backing sent the native KDA token plummeting over 60% in hours, erasing nearly $100 million from its market cap and leaving it trading at $0.097—a 99% drop from its 2021 all-time high of $27.64. As DeFi TVL holds steady above $150 billion in 2025, Kadena’s demise underscores the vulnerabilities of even well-funded projects in a market dominated by Ethereum and Solana, where competition and liquidity shortages can spell doom for underperformers.

The Shutdown Announcement: “No Longer Able to Continue”

Kadena’s core team cited “unfavorable market conditions” as the reason for halting all activities, including development, support, and network upkeep. In an official X post, the organization stated: “Kadena organization is no longer able to continue business operations and will be ceasing all business activity and active maintenance of the Kadena blockchain immediately.” While the decentralized proof-of-work chain will persist via independent miners and validators, the loss of centralized resources leaves its future uncertain. The wind-down includes a small internal team for transition, but no further funding or updates are promised.

Kadena, founded in 2016 by former JPMorgan engineers Stuart Popejoy and Will Martino, positioned itself as “the blockchain for business” with scalable Chainweb architecture supporting up to 480,000 TPS. Despite a $100 million grant program in 2022 and Binance Labs backing, it struggled with adoption, peaking at $9 million TVL in 2022 before declining to $190,000. Trading volume, once vibrant, now lingers at $48 million daily, highlighting the network’s fading relevance.

KDA Token Crash: 60% Wipeout and Market Reaction

The announcement triggered panic selling, with KDA crashing 60% from $0.30 to $0.097 within 90 minutes. Volume spiked 1,277% to $105.3 million, per CoinGecko, as investors fled. The token’s $28 million market cap reflects a 99% loss from 2021 highs, with 83.7 million KDA scheduled for 2029 unlocks and mining rewards until 2139. Community backlash has been fierce, with Kaddex (@Kaddex_Official) promising to reach out to affected users and demanding accountability from Kadena’s directors.

Reactions vary: Some praise the decentralization, noting the chain’s survival without corporate support, akin to Bitcoin. Others lament the abandonment, calling for audits and refunds. On X, sentiment is 70% bearish, with calls for community-led governance to salvage the protocol.

2025 Implications: Lessons for DeFi Projects

Kadena’s collapse highlights the perils of hybrid models in 2025’s crypto landscape, where EVM-compatible chains like Solana dominate with $11 billion TVL. The $50 million Leap Grant’s fate remains unclear, potentially leaving developers in limbo. For DeFi users, it reinforces the need for audited, community-driven projects over corporate-backed ones, reducing rug-pull risks in an era of $150 billion+ TVL.

Trading implications: KDA’s $0.097 low tests $0.08 support; a rebound above $0.12 could target $0.15, but sentiment remains fragile. Long-term, community efforts may revive it, but competition looms.

In summary, Kadena’s shutdown and 60% KDA crash serve as a stark warning for DeFi’s future, emphasizing decentralization’s double-edged sword in 2025’s resilient yet unforgiving market.