Cryptocurrencies, or digital assets that operate on decentralized networks, have proliferated in the last decade.
Cryptocurrencies, or digital assets that operate on decentralized networks, have proliferated in the last decade.
CoinGeckoA cryptocurrency rating platform, stated in a new report that it has listed more than 24,000 cryptocurrencies since 2014. The total number of cryptocurrencies that have ever existed could be greater than this figure.
However, not all have survived or thrived in the volatile and competitive cryptocurrency market. According to a recently published report by CoinGecko, more than 50% of the cryptocurrencies it listed in the last decade could be considered dead.
The report defines “dead” or “failed” coins as cryptocurrencies that were once included in CoinGecko but are now deactivated due to various circumstances, such as not reflecting any trading activity in the last 30 days.
This category also includes projects that were considered scams or scams. Some projects may request deactivation, such as when the team dissolves, changes name, or closes the project, or when old tokens lose sufficient liquidity or die; They are also classified as dead coins.
Most Dead Cryptocurrencies Launched During 2021 Bull Run
According CoinGecko50%, or approximately 14,039, of the more than 24,000 cryptocurrencies listed on the platform since 2014 have died.
The majority of dead cryptocurrencies were launched during the 2020-2021 bull run, of which 7,530 died, representing 53.6% of all dead cryptocurrencies on CoinGecko. During that period, more than 11,000 cryptocurrencies were listed on CoinGecko, and 70% of them have since closed.
In comparison, 1,450 projects that were launched during the 2017-2018 bull market were subsequently closed. Three thousand cryptocurrencies were listed on CoinGecko in this period, resulting in a similar failure rate of 70%.
The large number of dead coins during the 2020-2021 period can be linked to the ease with which tokens can be deployed, as well as the rise in popularity of meme coins. However, many meme coin projects start without a product and the vast majority fail after a short period of time.
