Highest Recorded County of Collapsed Cryptocurrency Ventures in 2025
Here Comes the Crash: More Than Half of Crypto Projects Crumble Since 2021
Gear up for some tough times in the crypto world: a fresh study by CoinGecko reveals that over 50 percent of crypto projects have gone belly-up since 2021! A whopping 3.7 million coins have bitten the dust out of a total 7 million listed on GeckoTerminal. So strap on, because this ride is only getting wilder.
A Scary Statistic: 52.7% Cryptocurrencies Fail Since 2021
CoinGecko's recent study has got us reeling—nearly 53% of crypto projects are now history! In 2021, approximately 2500 coins went kaput. But it's been an upward trend ever since: by 2023, the number already skyrocketed to over 250k. However, the years 2024 and 2025 saw the most carnage, with over 1.3 million failures in 2024 and an astounding 1.8 million failures just in Q1 of 2025!
The Great 2025 Crash: 49.7% Failure in 3 Months
The first quarter of 2025 has seen the mother of all crypto crashes, according to CoinGecko. The number of failed projects soared to a staggering 1.8 million by March 31st. With two more quarters to go, it's safe to say the number might just keep growing. And here's the kicker—more than 49% of the total failures for the past four years happened just in the first three months of 2025!
Last year, CoinGecko witnessed a massive influx of crypto projects, with over 3 million coins listed. However, the last three months alone have seen a whopping 1.9 million projects added, with a whopping 1.8 million already biting the dust!
Why is the Crypto Crash Happening?
But why is this happening? CoinGecko's study sheds some light on the culprits behind the unprecedented failure rate:
- Market Turbulence: A harsh post-inauguration downturn in 2025 triggered a cascade of failures, particularly in Q1, when 1.8 million tokens collapsed[3][5]. Widespread market instability, including Bitcoin's volatility following its record peak, amplified sell-offs and reduced liquidity for smaller projects[3].
- Easier Token Creation: Easy-to-use platforms like pump.fun have made it simpler than ever to crank out tokens by the hundreds, resulting in an oversaturated market[5]. Many of these launches are low-effort projects, often meme-based or without solid development teams[5].
- Speculative Dynamics: Many failed tokens promised jaw-dropping returns, enticing speculative investments that crumbled under market pressure[2][5]. These projects also suffered from poor fundamentals, such as weak whitepapers or inactive communities[2].
- Survivorship Bias: While half of all crypto projects have failed, successful ones are primarily those that focus on real-world use cases (e.g., supply chain, gaming, DeFi)[2][5]. CoinGecko urges investors to vet team credibility and project roadmaps to avoid getting burned.
So, buckle up, because the crypto rollercoaster isn't slowing down anytime soon!
- The first quarter of 2025, according to CoinGecko, has witnessed the largest crypto crash ever, with over 1.8 million failed projects, and with two more quarters to go, the number might continue to grow.
- CoinGecko's study reveals that nearly half (49.7%) of the total crypto failures from 2021 to 2025 occurred in the first three months of 2025 alone.
- The mass failure of crypto projects is due to several factors, such as market turbulence following Bitcoin's volatility, an oversaturated market due to easier token creation, speculative dynamics leading to unsustainable promises of high returns, and a high rate of low-effort, meme-based projects with weak fundamentals.
- CoinGecko calls for investors to carefully vet team credibility and project roadmaps to avoid getting burned, as most successful crypto projects focus on real-world use cases such as supply chain, gaming, and DeFi.
- The turbulent crypto market, with over half of projects crumbling since 2021, is a signal for investors to familiarize themselves with analytical tools like GeckoTerminal and stay informed about the latest trends and technologies in finance and cryptocurrencies to make informed investing decisions.
