Unveiling the Cryptocurrency Mortality: A Deep Dive into CoinGecko’s Data

Unveiling the Cryptocurrency Mortality: A Deep Dive into CoinGecko’s Data

Cryptocurrency enthusiasts navigate the digital landscape with high hopes, but recent findings from CoinGecko paint a stark reality. Since 2014, over 50% of the digital currencies listed on CoinGecko have met their demise, and the year 2021 emerges as the graveyard’s busiest period.

The Cryptocurrency Graveyard: A Comprehensive Overview

CoinGecko’s latest data compilation reveals a chilling statistic – out of the 24,000 cryptocurrencies ever listed on the platform since 2014, a staggering 14,039 have faded away into oblivion. This digital demise isn’t evenly distributed across the years; instead, it peaks during specific bull markets.

The 2020-2021 Bull Run: A Breeding Ground for Failure

The majority of deceased digital assets, a whopping 53.6% or 7,530 projects, surfaced during the 2020-2021 bull run. This period, known for its unprecedented growth, also witnessed a surge in cryptocurrency casualties. Interestingly, the preceding bull run in 2017-2018 contributed over 11,000 projects, with approximately 70% of them now defunct.

2017-2018 Bull Run Fallout

A closer examination of the numbers exposes a somber reality – 1,450 projects launched during the 2017-2018 bull run have shut down, reflecting a similar failure rate of about 70%. Analysts at CoinGecko attribute this trend to the ease of coin deployment and the rise of meme coins. Many meme coin projects, lacking tangible products, faced abandonment shortly after launch, as noted by CoinGecko’s Research Associate, Shaun Paul Lee.

2021: A Bleak Chapter in Cryptocurrency History

The most noticeable setbacks are among cryptocurrencies launched in 2021, with a staggering 5,724 failing as of January 2024. This marks a grim milestone, as over 70% of 2021-listed cryptocurrencies have succumbed to the harsh realities of the market.

The Ripple Effect in 2022 and 2023

The ripple effect extends into subsequent years, with cryptocurrencies listed in 2022 experiencing a 60% failure rate, resulting in 3,520 projects shutting down. In contrast, the data paints a more optimistic picture for 2023, as only 289 out of over 4,000 cryptocurrencies listed during this year have met a similar fate. This signifies a failure rate of less than 10%, indicating a substantial decline compared to the tumultuous years that preceded it.

Unraveling the Causes: From Meme Coins to Market Dynamics

CoinGecko’s analysts suggest that the surge in dead coins during the 2020-2021 period can be attributed to the simplicity of coin deployment and the proliferation of meme coins. Projects lacking a tangible product faced abandonment shortly after launch, contributing to the alarming number of failures during this time.

In conclusion, the cryptocurrency landscape is dynamic, and the data from CoinGecko provides valuable insights into the industry’s highs and lows. As investors navigate the ever-evolving market, understanding the patterns of success and failure becomes crucial for making informed decisions in this volatile ecosystem.

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