More than half of all crypto tokens have failed — and most died in 2025

Overview

A recent analysis by CoinGecko reveals a significant decline in the number of active crypto tokens, with over 13.4 million tokens disappearing between mid-2021 and 2025. This trend highlights the volatility and challenges within the cryptocurrency market, raising questions about the sustainability of numerous tokens that have entered the space in recent years.

The Decline of Crypto Tokens

The analysis conducted by CoinGecko indicates that the cryptocurrency market has seen a dramatic reduction in the number of available tokens. Specifically, more than 13.4 million tokens have been erased from existence within a four-year period. This figure underscores the high failure rate among crypto projects, as many tokens that were once launched have not been able to sustain themselves in the competitive and rapidly evolving landscape of digital assets.

The disappearance of these tokens is significant for several reasons. Firstly, it reflects the challenges faced by new projects in gaining traction and maintaining user interest. The influx of tokens during the bullish periods of the market has led to an oversaturation, making it increasingly difficult for individual projects to stand out. As a result, many tokens have failed to achieve the necessary adoption or utility to survive.

Moreover, the data suggests that the majority of these failed tokens ceased to exist in 2025. This timeline indicates a potential culmination of market pressures and shifts in investor sentiment, likely influenced by various factors, including regulatory developments, technological advancements, and changing user preferences. The high failure rate raises concerns about the long-term viability of many crypto initiatives and the overall health of the market.

From author

The findings from CoinGecko serve as a stark reminder of the risks associated with investing in cryptocurrencies. While the allure of potential gains can be enticing, the reality is that the market is fraught with uncertainty. The substantial number of failed tokens highlights the importance of thorough research and due diligence for investors. Understanding the factors that contribute to the success or failure of a token can be crucial for navigating this volatile landscape.

Investors and stakeholders must recognize that the cryptocurrency market is not only about the tokens that succeed but also about the lessons learned from those that do not. The analysis presents an opportunity for reflection on the trends that lead to token failure and the characteristics that can contribute to the success of future projects.

Impact on the crypto market

• The disappearance of over 13.4 million tokens indicates a significant shakeup in the crypto market, reflecting its inherent volatility.
• The high failure rate may lead to increased scrutiny from investors and regulators, potentially impacting future token launches.
• The findings suggest that market saturation may be a critical issue, prompting a more selective approach to investment in cryptocurrencies.
• The trend emphasizes the need for projects to demonstrate real utility and adoption to survive in a competitive environment.
• The data could influence investor behavior, leading to a more cautious approach when evaluating new tokens in the future.