The cryptocurrency market continues to face challenges, as highlighted by a recent CoinGecko report. According to the study, more than half of the tokens launched since 2021 are inactive due to high volatility and lack of support.
CoinGecko Report on Inactive Tokens
CoinGecko's analysis shows that over 3.7 million tokens have become inactive since 2021, representing a 52.7% failure rate. This rise in failures coincided with increased market volatility.
Reasons Behind High Failure Rates
The report links the surge in failures to platforms like Pump.fun on Solana, which facilitated mass token creation without adequate support. In 2024, this trend contributed to 1.4 million project failures.
Future of the Cryptocurrency Market
Future outcomes may involve stricter regulatory frameworks or technological advancements. Understanding these trends might provide safeguards against economic impacts and enhance market stability.
The state of the cryptocurrency market provides several lessons on the need for resilience and support for new projects to avoid high failure rates in the future.
