BlockBeats News, May 21st, Syndicate Labs announced that after five years of developing on-chain infrastructure for a customizable Ethereum Rollup and sequencer, the company has decided to shut down operations due to the shrinking Rollup market.

The Ethereum scaling ecosystem is mainly dominated by three major players: Arbitrum One, Base, and OP Mainnet, which together hold 75% of the market share. Smaller companies are gradually being squeezed out as activity and funds concentrate towards the top three. In 2021, Syndicate Labs completed a $20 million Series A funding round led by Andreessen Horowitz. This decision has caused the price of the SYND token to drop by 21% in the past three hours, hitting a new all-time low of $0.012, a 99.5% decrease from its peak of $2.61 in September 2025.

Furthermore, Syndicate Labs stated that the Syndicate Network Collective is separate from Syndicate Labs, so SYND token governance will not be immediately affected, and the shutdown decision is not related to the previous hack of bridged assets.