Cryptocurrencies, or digital assets that operate on decentralized networks, have been proliferating in the past decade.
CoinGecko, a crypto ranking platform, stated in a new report that it has listed over 24,000 cryptocurrencies since 2014. The total number of cryptocurrencies that have ever existed might be greater than this number.
However, not all of them have survived or thrived on the volatile and competitive crypto market. According to a report recently released by CoinGecko, more than 50% of the cryptocurrencies it had listed in the last decade might be considered dead.
The report defines "dead" or "failed" coins as cryptocurrencies that were once listed on CoinGecko but are now deactivated based on various circumstances, such as not reflecting any trading activity within the last 30 days.
This category also includes projects that were found to be frauds or rug pulls. Some projects may request to be deactivated, such as when the team disbands, rebrands or closes the project, or when old tokens become sufficiently illiquid or dead; they are also classified as dead coins.
Majority of dead cryptocurrencies launched during 2021 bull run
According to CoinGecko, 50%, or approximately 14,039, of the over 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 have died, accounting for 53.6% of all dead cryptocurrencies on CoinGecko. During the said period, over 11,000 cryptocurrencies were listed on CoinGecko, with 70% of them closing down since.
In comparison, 1,450 projects that were launched during the 2017-2018 bull run have subsequently been shut down. Three thousand cryptocurrencies were listed on CoinGecko in this period, resulting in a similar 70% failure rate.
The high number of dead coins over the 2020-2021 period can be linked to the ease with which tokens can be deployed as well as the surge in the popularity of meme coins. However, many meme coin projects begin without a product, and the vast majority fail after a short amount of time.