CoinGecko has reported that over 50% of coins have died. Since 2014, CoinGecko has recorded almost 24,000 coins, 14,039 of which are defunct. This data sheds light on the challenging landscape and volatility within the cryptocurrency market. Coins launched during the 2020-2021 bull market are mostly defunct. This time saw 7,530 cryptocurrencies disappear from CoinGecko, 53.6% of all cryptocurrencies. In the previous optimistic market era of 2017-2018, 1,450 of the 11,000 listed cryptocurrencies failed.

2021 Records Highest Death Rate with 5,724 Failed Cryptocurrency Projects

Source: CoinGeko

The ease of token launches and the popularity of meme currencies contributed to the rise in failed ventures in 2020–2021. Many meme coin efforts were launched without tangible products, resulting in their abandonment. The 2021 cryptocurrency death rate was the highest, with 5,724 pronounced dead. The highest project launch failure percentage in recent history was 70%.

Over 60% of 3,520 coins mentioned failed in 2022. Fewer listed coins failed in 2023, with 289 out of approximately 4,000 failing. Failure rates dropped significantly from previous years.

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Cryptocurrency efforts have grown due to the ease of token distribution, especially during market optimism. The ease of manufacturing meme coins without items and their popularity have led to more abandoned projects. These characteristics emphasize project basics and viability.

CoinGecko Lists Factors Leading to Deactivation

Many factors can make cryptocurrencies inactive on CoinGecko. Cryptocurrencies can be deactivated with no trading activity in 30 days. Media coverage or credible reports to CoinGecko may deactivate projects exposed as fraud or exit scams. When a team dissolves, rebrands, terminates, or modifies tokens to make them untradable or obsolete, cryptocurrency projects may seek deactivation.

This study analyzes the cryptocurrency business and highlights the challenges various projects face in the volatile market. The results show that crypto success depends on careful study and solid project foundations.

The cryptocurrency market has seen over 50% of listed cryptocurrencies fail. Failure rates have increased due to the rise of failed projects in 2020–2021, especially those using worthless coins. In an environment where token deployment is simple and could potentially lead to a wave of unsustainable enterprises, the study emphasizes the significance of project foundations and feasibility assessments. As the crypto industry evolves, investors and project developers must be more selective.

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