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Syndicate Labs will cease operations due to the shrinking Rollup market
BlockBeats News, May 21 — Syndicate Labs announced that after five years of developing on-chain infrastructure for customizable Ethereum rollups and sequencers, the company has decided to cease operations due to the shrinking rollup market.
The Ethereum scaling ecosystem is mainly dominated by three players: Arbitrum One, Base, and OP Mainnet, collectively holding 75% of the market share. Smaller companies are gradually being pushed out as activity and funding concentrate among the top three. Syndicate Labs completed a $20 million Series A funding round led by Andreessen Horowitz in 2021. This decision caused the SYND token price to drop 21% in the past three hours, hitting a new low of $0.012, down 99.5% from its peak of $2.61 on September 2, 2025.
Additionally, Syndicate Labs stated that Syndicate Network Collective operates independently of Syndicate Labs, so the governance of the SYND token will not be immediately affected, and the shutdown decision was not influenced by the previous bridge asset hack incident.