Blocto halts operations, shaking the Flow ecosystem — the story behind FLOW's price dropping over 99%

The shutdown announcement of Blocto Wallet, like a stone thrown into a calm lake, has stirred ripples throughout the Flow ecosystem. This mainstream wallet, carrying assets and expectations from countless users, officially announced it will cease operations on December 17, 2025.

Its announcement directly pointed out that the core reason for this decision was the avalanche-like decline in the price of its native token FLOW. The token’s price has fallen from nearly $40 at its peak in 2021 to around $0.185 currently, a drop of over 99%, resulting in the project being in long-term severe losses.

01 The End of an Era, an Important Piece of the Flow Ecosystem

As one of the most important and widely used wallets in the Flow public chain ecosystem, Blocto’s departure marks the end of an era. It is not just a wallet for storing assets but also a key portal connecting users to numerous NFTs and DApps on Flow.

According to its official announcement, after serving over 2 million users for five years, Blocto will officially cease operations at 7:00 PM PST on December 18, 2025. At that time, Blocto Wallet, BloctoSwap, and Blocto cross-chain bridge services will all be shut down.

This decision was not made lightly. The announcement revealed that the team had been communicating with the leadership of Flow/Dapper since June this year, seeking sustainable solutions. However, after six months of attempts, they failed to secure any substantive meetings, and poor communication efficiency led to the continuous depletion of remaining funds.

Looking back at its highlights, Blocto completed a Series A funding round in February 2023 with a valuation of $80 million, with notable investors including Mark Cuban, IPX, and 500 Global.

02 The Behind-the-Scenes Driver, the Value Crisis of FLOW Token

The direct cause of Blocto’s demise is its long-term, severe financial losses. The root of these losses is attributed to the continuous decline in the price of its core ecosystem asset, the FLOW token.

According to the announcement data, FLOW’s price has fallen from nearly $40 in 2021 to below $0.2 currently, a decline of over 99%. This almost “zeroing out” performance is fatal for projects heavily reliant on ecosystem value and token incentives.

Despite community efforts to maintain stability, the project team stated that over the past few years, they have accumulated operational losses exceeding $5.5 million to sustain community services. Ultimately, exhausted funds became the final straw that broke the camel’s back.

The case of Blocto reveals a harsh reality: in the cryptocurrency field, even with excellent products and a large user base, if the core economic model is deeply tied to the token’s value and that value continues to bleed, the project faces enormous survival challenges.

03 The Current Market, FLOW on Gate

So, how is the FLOW token performing on major trading platforms at the moment of Blocto’s announcement?

As of December 17, 2025, on the Gate exchange, FLOW’s current price is approximately $0.185. In the past 24 hours, its price has slightly rebounded with a +2.43% increase, but over the past 7 days, it still shows a -16.61% slight decline.

Compared to the recent low mentioned in Blocto’s announcement of below $0.3, the current price has rebounded slightly but is still far from its historic highs. The current total market cap of FLOW is about $301 million, ranking around 150th among global cryptocurrencies.

This price level, compared to its all-time high of $42.40, still represents a decline of over 99.2%, confirming the harsh reality described in Blocto’s announcement. The long-term price depression not only dampens investor confidence but also severely erodes the survival foundation of projects within the ecosystem that depend on token economics.

04 The Domino Effect, Ecosystem Impact and User Responses

Blocto’s shutdown has directly impacted the Flow ecosystem. As a major entry point, its closure means reduced convenience for users accessing DApps within the ecosystem, potentially triggering some user loss and asset transfers.

For many Blocto users, the immediate priority is to properly handle assets before the service ends. According to official guidance, users must complete a series of critical operations before 7:00 PM PST on December 18, 2025.

These include: withdrawing all liquidity pool assets from BloctoSwap; bridging cross-chain assets on Flow (such as tUSDT) back to their original networks (like Ethereum); for custodial users, manually exporting private keys to switch to non-custodial mode, or they will permanently lose access to their assets.

Fortunately, Blocto’s own node staking service will not be affected by this shutdown. Users can export private keys and migrate staked assets to other supported wallets for continued management without unstaking in advance.

05 Future Outlook, the Post-Blocto Era of the Flow Ecosystem

Blocto’s departure undoubtedly casts a shadow over the future of the Flow ecosystem. It exposes the fragility of relying on a single project with its ecosystem token deeply tied to its value. When the core asset’s value cannot be sustained in the market for a long time, even the most robust infrastructure may struggle to survive due to “bleeding out.”

This incident also serves as a wake-up call for the entire crypto industry. It reminds projects that while building complex products and ecosystems, they must establish diversified, resilient business models and reserve funds, and avoid placing all hopes of survival solely on volatile token prices.

For the Flow ecosystem, the post-Blocto era requires new leaders to emerge who can more stably serve users and developers. Meanwhile, how the ecosystem foundation and core team can more effectively support critical infrastructure and prevent similar tragedies will be key to whether it can regain vitality.

Future Outlook

After Blocto’s announcement, the official social media accounts of Dapper Wallet, another major wallet on the Flow chain, were flooded with comments asking about its future plans. A user named “Crypto_Nomad” left a message: “Who can we trust now?”

Market data shows that within 24 hours of Blocto’s announcement, the total locked value (TVL) on the Flow chain dropped by about 15%. Meanwhile, activity on FLOW deposit addresses on centralized exchanges surged by 40%, as many users transfer assets out of the ecosystem wallets about to shut down.

In the Gate FLOW/USDT trading discussion area, bearish sentiment is pervasive. A trader posted a weekly chart of FLOW from 2021 to now—a long, steep downward curve, with only one word written beside it: “Tombstone.”