Crypto currency market is known for its high volatility and potential returns, but the latest research report from the well-known data platform Coingecko reveals an alarming reality: since 2021, over half of the cryptocurrency projects listed on GeckoTerminal have "died", reflecting the rapid turnover and potential huge risks in the industry.
Shocking Data: Over Half of Crypto Projects Have "Died"
According to Coingecko's research report, among nearly 7 million cryptocurrencies listed on GeckoTerminal, over 3.6 million projects have ceased trading and been deemed failed from July 1, 2021, to March 31, 2025, accounting for 52.7% of the total.
Notably, the number of failed projects has seen explosive growth in recent years, with the first quarter of 2025 witnessing a staggering 1.8 million collapsed tokens, almost half of all recorded failed projects.
Reasons for Failure: Project Proliferation and Market Volatility
Coingecko points out that the surge in failure rates is closely related to the explosive growth in total project numbers. Platforms like pump.fun have greatly simplified token creation, leading to an influx of meme coins and low-investment projects lacking substantial technical or business models, whose inherent speculative nature determines their fragility.
Moreover, the inherent volatility of the cryptocurrency market, combined with macroeconomic uncertainty and potential regulatory risks, has accelerated the collapse of many weaker projects. Such a high failure rate challenges the sustainability of the entire crypto ecosystem and sounds an alarm for investors.
Learning to thoroughly research project fundamentals, be wary of over-speculation, and understand potential risks is key for every investor to protect their assets.
