Cosmos Founder Declares Ecosystem ‘Pretty Much Dead’ Amid Funding and Competition Woes

• Cosmos (ATOM) is facing an existential crisis with the exit of core projects and declining user interest.
• Validator operations are becoming increasingly unsustainable.

The Cosmos blockchain is facing harsh challenges in early 2026, with key projects leaving and leading voices warning of its collapse. According to Christopher Goes, co-founder of the Anoma protocol, Cosmos is “nearing its end,” as user participation and funding continue to fall across the network.

Several high-profile projects have already exited or are in the process of stepping back. Penumbra has shut down operations entirely. Osmosis has moved into maintenance mode and shifted resources elsewhere. Noble is preparing to leave the Cosmos stack to pursue development in other ecosystems.

Goes shared his remarks on X, saying that “many projects have folded” and that validator operations are becoming increasingly unsustainable. He added that most of the remaining capital is concentrated in Cosmos’s native token, ATOM, managed by the Interchain Foundation (ICF). This funding, he noted, is now being directed primarily toward ATOM-related development and business initiatives.

Cosmos Roadmap Updates Contrast 

Despite the exodus, Cosmos Labs is pushing forward with new infrastructure plans. As CNF outlined, the project recently unveiled its 2026 roadmap, which includes a Proof-of-Authority (PoA) framework and privacy-focused tools. These products are intended to improve interoperability and performance, and to support broader adoption across enterprise and retail sectors.

Still, Goes argued that the broader issues run deeper than one solution or roadmap. He said that user and developer interest in the network has dropped to historic lows. According to him, the cost of maintaining application-specific infrastructure is too high for many teams, especially without ecosystem-level demand or growth.

Goes said this environment is leading many privacy-focused applications to shift toward ecosystems such as Ethereum or Solana, where infrastructure, demand, and funding are stronger.

Glider Airdope founder “Ed” echoed those views, writing on X that the Cosmos ecosystem is “pretty much dead,” citing a wave of exits and scale-backs. Subsequently, the validator model also faces pressure, with several operators pausing or shutting down nodes due to a lack of financial viability.

Goes claimed he had heard directly from validators who said operations at current prices were no longer sustainable. However, the Interchain Foundation remains active but is narrowing its focus as broader developer engagement weakens.

As uncertainty spikes, the ATOM price has been unable to remain on the upside after hitting resistance at $2.64. At press time, the token was trading at $2.57, a 2.2% decline from the 24-hour high. However, despite all the turbulence, the token is up 17% in the last 30 days.