Syndicate Labs, a venture capital-backed company focused on customizable Ethereum rollups, has announced its closure after five years of operation. The decision stems from a significant contraction in the rollup market, which is now largely controlled by Arbitrum and Base, holding a combined 68% market share, according to L2Beat. The company raised $20 million in Series A funding in 2021 but has struggled as smaller networks continue to be squeezed out of the market. The total value secured across the layer-2 rollup ecosystem has plummeted by 36% since its peak of over $50 billion, with many smaller networks becoming 'zombie chains' due to a 61% drop in Layer 2 activity since June. Syndicate Labs noted that the shift away from its technology made it unsustainable to continue operations. Additionally, the SYND token experienced a 44% drop following a security breach earlier this year, further compounding the company's challenges. Syndicate Labs joins a growing list of crypto and DeFi projects that have shut down in 2023, reflecting ongoing struggles within the sector.