Solana’s Cardinal protocol winding down operations due to economic conditions
Solana’s Cardinal protocol, which aimed to improve NFT utility, is shutting down its operations due to economic conditions. The announcement on Twitter stated that withdrawals should be made by Aug. 26. Cardinal Labs provided infrastructure support for NFT use cases on the Solana network, offering protocols and SDKs for various functionalities.
- Part of the operations will be halted on July 19, including staking pool creations, token management, NFT rentals, and more.
- The team cited the challenging macroeconomic environment and being stuck within the crypto maximalist community as reasons for winding down.
- Cardinal raised $4.4 million in a seed funding round in July 2022 and secured $5.2 million in funding over 18 months.
- The NFT market has shown signs of maturing, with Q1 2023 being the best quarter since Q2 2022.
Despite the unfortunate circumstances, the NFT market continues to evolve and show promise. While Cardinal Labs’ closure is a setback, it is a testament to the challenges faced by projects in the crypto space. The NFT market’s growth and competition among marketplaces indicate a positive trajectory for the industry.