Crypto Graveyard: More Than 50% of Cryptocurrencies Listed on Coingecko Have “Died” Since 2014

In a recent comprehensive analysis of the cryptocurrency landscape, a report by CoinGecko revealed disturbing insights into the fate of digital currencies, showing that more than 50 percent of the 24,000 digital currencies listed on the platform since 2014 have died out.

This equates to 14,039 cryptocurrencies labeled as “dead” or “failed” due to either prolonged inactivity or an inherent lack of viability as an effective medium of exchange.

Market Turmoil: Cryptocurrencies Face Extinction by 2021

The report paints a vivid picture of a challenging and uncertain market, with a significant correlation between bullishness and project failures. the exuberant price spikes and speculative fervor during the 2020-2021 boom led to the highest number of casualties, with 7,530 tokens (53.6% of all failed tokens) disappearing in the ensuing correction.Bitmain Miner

This period also witnessed the proliferation of modal tokens, which were characterized by a lack of solid technological foundations and clear use cases, leading to their rapid rise and subsequent decline.

As of January 2024, there have been 5,724 deaths, with cryptocurrencies launched in 2021 performing the worst. 2021 was the worst year for project launches, with more than 70% of cryptocurrencies on CoinGecko perishing.

Next up are cryptocurrencies launched in 2022; 3,520 of them have crashed, an accident rate of around 60%.

Cryptocurrency “deaths” by year of launch. Source: Coingecko

In 2023, 289 cryptocurrencies listed by CoinGecko disappear. More than 4,000 coins were launched, with a failure rate of less than 10%, a significant drop from previous years.

In this sobering assessment, there is a glimmer of hope in the 2023 data. The failure rate for tokens issued this year is significantly lower than 10%, with only 289 of the more than 4,000 tokens having failed so far.ETC Miner

The market capitalization of cryptocurrencies stands at $1.476 trillion as of today. Chart: TradingView.com

Investors adapt: favoring stronger crypto projects

This positive trend can be attributed to a number of factors, including a possible shift toward better-structured projects with stronger value propositions and a sophisticated investor base that engages in more thorough research and due diligence.

The report identifies several key reasons for cryptocurrency deactivation on the CoinGecko platform. Prolonged inactivity for more than 30 days tops the list, followed by credible evidence of media reports or revelations of scams or fraudulent activity.

Additionally, the dissolution of the project’s team, rebranding efforts, or making tokens unusable were also cited as factors that warranted deactivation.

Ultimately, CoinGecko’s report is a wake-up call for investors navigating the turbulent waters of the cryptocurrency market. With such a high failure rate, the need for thorough research and keen evaluation of individual projects becomes apparent.