Rapid Increase in Crypto Projects Linked to Pump.fun's Debut, Reveals CoinGecko
Crypto Chaos Unveiled: CoinGecko Report Reveals Startling Survival Rates for Launched Cryptocurrency Projects
Are you curious about the latest updates in the cryptocurrency world? From Bitcoin to Ethereum, Altcoins, Trading, and more, we've got you covered! The latest report from CoinGecko paints a sobering picture of the crypto landscape, as over half of all cryptocurrency projects launched since 2021 have failed.
Let's dive into the details behind this shocking statistic:
- The Skyrocketing Number of Launched Projects: CoinGecko's data shows that the number of cryptocurrency projects listed on their platform has grown exponentially. In just four years, from 2021 to 2025, the number has surged from 428,383 to nearly 7 million. [1, 5]
- Project Fails: Yet, nearly 3.7 million of these projects have ceased trading and are considered failed. This staggering failure rate stands at an alarming 52.7%. [1, 4]
But here's the kicker: In 2025 alone, over 1.8 million projects have failed, which represents a massive 49.7% of all project failures filed from 2021 to 2025. [3, 4]
So, What’s Behind This Cash-Draining Trend?
Market Volatility
The cryptocurrency market is inherently volatile, with economic instability and political events contributing to the turmoil. [1, 5]
Meme Coins and Low-Effort Projects
The increased accessibility to launch tokens on platforms like Pump.fun has resulted in a surge of low-quality projects with limited utility, further exacerbating the downward trend. [1, 5]
By understanding these factors propagating the death of crypto projects, we can learn to navigate the market more strategically and make informed decisions.
Evaluating Failed Crypto Projects: The Criteria
Projects are considered "dead" when there's minimal trading volume, signs of abandoned development, significant price drops, or an inactive social media presence. [4]
In conclusion, the crypto market is grappling with a high failure rate of newly launched projects, emphasizing the importance of robust tokenomics, strong community support, and strategic planning for project success.
Stay tuned for more industry insights and delve deeper into the future of finance, including bitcoin, ethereum, trading, and web 3!
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[1] CoinGecko (2025) Cryptocurrency Market Report May 2025, Retrieved from https://www.coingecko.com/en/reports/2025/may/cryptocurrency-market-report-may-2025 [2] Dune Analytics (2025) Pump.fun Token Creation Data, Retrieved from https://dune.xyz/unknwon-xyz/Pump.fun%20Token%20Creation%20Data [3] CoinGecko (2025) GeckoTerminal Project Failure Data, Retrieved from https://www.coingecko.com/geckoterminal/failed_projects [4] CoinGecko (2021) How CoinGecko Labels a Cryptocurrency as “Dead,” Retrieved from https://coinmarketcap.com/faq/how-does-coinmarketcap-determine-which-cryptocurrencies-are-dead/ [5] The Daily Hodl (2025) CoinGecko Report Shows Over 50% Crypto Projects Have Failed, Retrieved from https://thedailyhodl.com/2025/05/05/coingecko-report-shows-over-50-crypto-projects-failed/
- The high failure rate of cryptocurrency projects, as revealed by CoinGecko's report, underscores the importance of strong tokenomics and strategic planning in the blockchain-based finance technology, where thousands of altcoins are constantly being launched.
- Meme coins and low-effort projects, fueled by platforms like Pump.fun, contribute to the alarming number of project failures in the cryptocurrency space, making it essential to evaluate and differentiate between high-quality and low-quality projects.
