Swellchain (SWELL) has confirmed via its official X account that it will permanently shut down its own network on June 15. The decision follows an earlier announcement in April, in which the project revealed plans to shut down its own blockchain infrastructure to focus resources on Faro, an artificial intelligence platform built on the Hyperliquid (HYPE) ecosystem.
Background and timeline
The closure marks a strategic pivot for Swellchain, which initially launched as a layer 2 solution aimed at improving scalability and liquidity within decentralized finance. According to the project’s announcement in April, its own network will cease operations on June 15, but Swellchain will continue to operate on the Ethereum (ETH) network. It is expected that the SWELL token will also remain active through a separate program, although specific details about that program have not yet been fully disclosed.
Focus on Faro and Hyperliquid
The main reason for the network closure is to focus development efforts on Faro, an AI intelligence platform built on Hyperliquid. Hyperliquid is a powerful blockchain designed for decentralized trading and financial applications. By switching to Hyperliquid, Swellchain aims to leverage its infrastructure for AI-driven solutions, rather than maintaining its own independent chain. This shift reflects a broader trend in the cryptocurrency space, where projects are consolidating resources across established platforms to reduce operational complexity and improve scalability.
Implications for SWELL token holders
For SWELL token holders, the transition means that the token itself will not disappear while the original network is decommissioned. Swellchain has stated that SWELL will continue to function on Ethereum through a separate program, which is expected to provide ongoing utility. However, the project has not yet released a detailed migration plan or timeline for token holders. Users are advised to monitor the official Swellchain channels for further updates to avoid any disruption to access or functionality.
Wider industrial context
Swellchain’s decision to close its own network is part of a larger pattern in the blockchain industry, where projects are increasingly moving away from maintaining independent chains in favor of building on existing, more mature platforms. This trend is driven by the high costs and technical challenges associated with operating a standalone network, as well as the desire to leverage established user bases and liquidity pools. By focusing on Faro and Hyperliquid, Swellchain is betting on the growing intersection of AI and blockchain technology, a sector that has attracted significant investment and attention in 2025.
Conclusion
The closure of Swellchain’s own network on June 15 represents a major strategic shift for the project. While this move may cause uncertainty for some users in the short term, the long-term focus on AI through Faro and Hyperliquid could position the project for growth in an emerging niche. Token holders must remain informed through official communications to ensure a smooth transition.
Frequently asked questions
Question 1: What happens to my SWELL tokens after the network is shut down?
A1: SWELL tokens will continue to exist on the Ethereum network through a separate program. The project has not yet provided full details on how token holders can access or use their tokens after the shutdown. Official channels should be checked for updates.
Question 2: Will Swellchain disappear completely after June 15?
A2: No. Although the original Swellchain network is shutting down, the project will continue to operate on Ethereum and focus development on Faro, an AI platform built on Hyperliquid. The Swellchain brand and the SWELL token will remain active.
Question 3: Why does Swellchain shut down its own network?
A3: Swellchain is shutting down its own network to focus resources on Faro, an AI intelligence platform on Hyperliquid. The decision is driven by the high costs of maintaining an independent chain and the desire to leverage Hyperliquid’s established infrastructure for AI applications.