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Router Protocol to shut down by Sept. 30 after bridge economics fail
The cross-chain project cited compressed bridge fees versus the fixed cost of always-on infrastructure, and it says ROUTE token holders face exchange-specific withdrawal timelines.
Router Protocol, a cross-chain infrastructure project supported by Coinbase Ventures, said it will shut down all remaining operations by Sept. 30 after concluding it could not sustain a bridge business model.
In explaining the decision, CryptoSlate said Router pointed to thin bridge economics, where bridge fees have compressed even as the cost of running always-on systems largely remains fixed. It added that bridge demand weakened as the speculative “fee pool” fell, and that activity has concentrated on fewer blockchains, with capital increasingly shifting toward artificial intelligence.
Router said DefiLlama data showed its Router Nitro processed about $677 in bridge volume over a 24-hour period on Sept. 7, while ROUTE market capitalization stood at roughly $56,600. The project also said it raised more than $4 million in 2021 from investors including Coinbase Ventures before launching its own Layer 1 network in 2024.
Router said the Sept. 30 closure does not set one universal withdrawal deadline for all ROUTE holders, with users advised to follow the timetable set by each centralized exchange. It noted KuCoin suspended ROUTE deposits on Sept. 5, and that final trading and withdrawal schedules would vary by venue.