According to a report by CoinGecko, the number of cryptocurrency projects has increased by 1500% over the past four years, reaching nearly 7 million. However, more than half of these projects have failed.
Growth in Cryptocurrency Projects
The report indicates that in 2021, 428,383 projects were registered, and by 2025, this number has risen to 7 million. This sharp increase in the number of tokens on the market is primarily driven by the emergence of launch platforms like Pumpfun.
Impact of the Pumpfun Platform
The Solana-based platform Pumpfun has played a significant role in the growth of projects. This platform simplifies the process of creating meme tokens and similar tokens without requiring extensive technical knowledge or significant capital. Consequently, over 10 million tokens were produced in the last year.
Sustainability Challenges for Projects
More than half of the launched projects have ceased trading. Approximately 3.7 million out of nearly 7 million projects listed between 2021 and 2025 are considered failures. The years 2024 and 2025 have seen a sharp rise in project failure rates, attributed to economic uncertainties and market fluctuations.
The increase in cryptocurrency projects driven by new launch platforms exposes risks due to low token sustainability rates. Investors should carefully evaluate the infrastructure and risk factors of these projects.
