Cryptocurrency Projects Surge Dramatically, Bearing High Failure Rates
By: cointurk|2025/05/04 23:15:01
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According to a report published by CoinGecko, the number of cryptocurrency projects has surged by 1500% over the past four years. In 2021, 428,383 projects were listed, whereas by 2025, this figure has reached approximately 7 million. The report reveals a rapid increase in the number of junk tokens in the market. Cryptocurrency Count The report highlights that the Solana $ 146 -based launch platform named Pumpfun significantly influenced the growth of projects. Pumpfun allows users to create meme coins and similar tokens without requiring extensive technical knowledge or significant capital. The platform enabled the production of more than 10 million tokens in the past year. CoinGecko emphasizes that the simplification of the token creation process by Pumpfun has been crucial. This situation has paved the way for low-effort projects to enter the market. Useless Altcoins The report states that more than half of the projects that were launched have ceased trading. Approximately 3.7 million of the nearly 7 million projects listed between 2021 and 2025 are considered failures, showing sustainability concerns despite the sector’s expansion. Data indicates an increased failure rate of projects, particularly during 2024 and 2025. Economic uncertainties and market fluctuations have adversely affected the survival duration of projects. While risks in the sector are brought to the attention of investors, the issue of permanence stands out. CoinGecko observed that 52.7% of all projects failed, with this rate increasing during 2024 and 2025. Additionally, 1.8 million tokens reportedly vanished in the first quarter of 2025. This figure accounts for almost half of all project collapses from 2021 to 2025. The rise in useless tokens and their collapse amidst market fluctuations and political developments is unsurprising. CoinGecko associates the sharp decline in token survival rates with overall market volatility. The rapid increase in project numbers driven by new launch platforms in the crypto market exposes risks due to a low sustainable success rate. Investors can take cautious steps by considering the infrastructure and risk factors of projects. The data indicates that while the market’s expansion brings opportunities, it also introduces challenges.
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