According to analytical data, more than half of the cryptocurrency projects created since 2021 have lost viability and are no longer demonstrating trading activity. According to a study by CoinGecko, 53.2% of all tokens from this period are currently classified as “dead.”
This is reported by Finway
Mass Closure of Projects in 2025
A significant surge in the closure of crypto assets occurred in 2025, with over 11.6 million abandoned or inactive tokens recorded. Analysts attribute this to the end of a period of active speculation, a decline in interest from retail investors, and increased demands for the utility of digital products. Most of these projects lost liquidity, developer support, or overall market interest.
“The high ‘mortality’ rate of cryptocurrencies reflects the natural process of market selection. As the industry matures, capital and attention shift towards infrastructure solutions, large ecosystems, and projects with proven use cases.”
Causes and Consequences of Market Inflation
From 2021 to 2025, the number of cryptocurrencies in the market increased from less than 500,000 to nearly 20 million. This explosive growth was made possible by simplified token launch tools and the popularity of meme coin platforms. At the same time, this led to a decline in the average quality of projects, as many were created without a strategy, economic sustainability, or real demand.
Analysts emphasize that a large portion of new tokens could not withstand competition and failed to adapt to changes in market conditions. In an environment of weakened liquidity and increasing competition, such projects were the first to leave the market, often just a few months after launch.
The report emphasizes that the increase in the number of tokens does not equate to an increase in the real value of the industry: the growth in supply is not accompanied by a corresponding rise in quality or demand. As a result, fundamental analysis becomes a key tool for investors in an oversaturated crypto market.