Conduit Cuts 40 Jobs as DeFi API Market Faces Consolidation

Conduit, a prominent provider of APIs for decentralized finance (DeFi) services, laid off 40 employees on March 3, 2026, marking a significant workforce reduction as the company adapts to evolving market conditions in the blockchain infrastructure space. The layoffs represent approximately 15% of the company's total workforce, reflecting broader challenges facing DeFi-focused technology companies amid shifting investor sentiment and regulatory uncertainty.

Context of the Decision

The workforce reduction comes as Conduit confronts mounting pressure from decreased demand for DeFi infrastructure services following the sector's maturation. The company, which provides critical API infrastructure enabling developers to build and integrate DeFi applications, has faced declining revenue as venture capital funding for DeFi projects has contracted significantly since 2024.

Industry analysts point to over-hiring during the 2024-2025 crypto bull run as a primary factor driving the current restructuring. Conduit expanded rapidly during this period to meet surging demand for blockchain APIs, but the subsequent market correction has forced the company to reassess its operational scale. The layoffs align with Conduit's strategic pivot toward more sustainable growth models and improved operational efficiency.

Impact on Operations

The job cuts primarily affected Conduit's business development and customer success teams, with additional reductions in engineering roles focused on experimental DeFi protocols. Sources familiar with the matter indicate that the company's core API development and infrastructure teams remain largely intact, suggesting Conduit aims to preserve its technical capabilities while reducing customer-facing operations.

The layoffs span across Conduit's primary offices in San Francisco and New York, with remote workers also affected. The company has maintained its London operations, which focus on European market expansion and regulatory compliance. Engineering teams working on Ethereum Layer 2 integrations and cross-chain compatibility features were reportedly spared from the cuts, indicating these remain strategic priorities.

Company Financial Background

Conduit raised $37 million in Series A funding in early 2025, led by Andreessen Horowitz and Paradigm, bringing its total funding to $52 million since its 2023 founding. The company achieved a $200 million valuation during its latest funding round, positioning it as a significant player in the DeFi infrastructure market.

However, revenue growth has slowed considerably since late 2025 as DeFi transaction volumes declined and new protocol launches decreased. The company's business model, which relies on API call volumes and subscription fees from DeFi developers, has faced pressure as many startups in the space have reduced their infrastructure spending or ceased operations entirely.

Despite the challenges, Conduit maintains strong relationships with major DeFi protocols including Uniswap, Compound, and Aave, which continue to generate steady API revenue. The company's focus on enterprise-grade reliability and compliance features has helped it retain larger clients even as smaller developers have churned.

Industry Outlook

The Conduit layoffs reflect broader workforce reduction trends across the DeFi infrastructure sector. Competitors including Alchemy, Infura, and QuickNode have similarly reduced headcount in recent months as the market consolidates around established players with proven revenue models.

The DeFi API market, valued at approximately $2.8 billion in 2025, faces headwinds from increased regulatory scrutiny and declining retail interest in DeFi applications. However, institutional adoption of DeFi protocols continues to grow, suggesting long-term opportunities for infrastructure providers that can navigate the current downturn.

Analysts expect further consolidation in the space, with smaller API providers likely to be acquired by larger players or exit the market entirely. Conduit's strong funding position and established client base position it well to weather the current storm and potentially gain market share as weaker competitors struggle.

Conclusion

While the 40-person workforce reduction represents a significant adjustment for Conduit, the company appears positioned to emerge from the current market downturn with a more sustainable cost structure. The preservation of core technical teams suggests Conduit remains committed to innovation in DeFi infrastructure, even as it adapts to more challenging market conditions. Success will depend on the company's ability to maintain its technological edge while building sustainable revenue streams in an increasingly competitive and regulated environment.