More than half of the cryptocurrency projects launched since 2021 have ceased operations or no longer have trading activity. According to CoinGecko, 53.2% of all tokens created during this period are classified as ‘dead’ — they have lost liquidity, are without developers, or fail to generate market interest.
This is reported by Business • Media
Reasons for the Mass Closure of Crypto Projects
The latest report analyzes data from GeckoTerminal, covering projects that were previously listed on exchanges and had active trading. Over time, many of them could not withstand competition, market changes, or failed to offer users real value. Experts emphasize that this is not only about fraudulent schemes but also about projects that could not adapt to the new demands of investors and the market.
“The key turning point occurred in 2025. During this period, the highest number of closed or abandoned tokens was recorded — over 11.6 million projects. CoinGecko links this trend to the end of the speculative cycle, a decline in retail interest, and an increase in investors’ demands for real product utility.”
Massive Growth in Token Numbers and Market Inflation
In recent years, the crypto market has significantly expanded — the number of digital assets increased from less than 500,000 in 2021 to nearly 20 million by 2025. The tools for launching new tokens have become simpler, and numerous meme coin platforms have emerged. However, this has led to market saturation with low-quality projects, most of which lacked a long-term strategy or sustainable economic model.
According to analysts, such projects often shut down within months of launch due to a lack of liquidity, intensified competition, and absence of real demand. As a result, the industry faced natural selection, where only those initiatives that can offer real benefits to the market survive.
CoinGecko notes that this trend reflects the evolution of the industry. Capital concentration is shifting towards larger ecosystems, infrastructure solutions, and projects with proven business models. Experts stress that the rapid growth in the number of tokens does not equate to an increase in real market value — fundamental analysis is becoming critically important for investors.
Previously, analyst Willy Woo warned of the likelihood of a bear market for Bitcoin in 2026.