According to a report from CoinGecko, about 52.7% of all cryptocurrencies listed on GeckoTerminal have become 'dead coins', with most projects exiting between 2024 and early 2025.
There are many reasons for the low survival rate of tokens, including general market volatility, weak fundamentals, and the emergence of tools that allow for easy token deployment without programming knowledge. This has led to a wave of mass token creation by ordinary users, with the simple goal of making quick money.
The main reasons behind the wave of 'dead coins'
The report states that in the first quarter of this year alone, 1.8 million tokens have exited, accounting for more than half of the total number of failures recorded to date.
52.7% of cryptocurrencies on GeckoTerminal have become 'dead coins' | Source: CoinGecko
Despite the dramatic increase in dead coins, the total number of cryptocurrency projects has also grown exponentially. By 2021, GeckoTerminal had recorded only 428,383 projects, but by 2025, this number had risen to nearly 7 million.
As of March 31, just after a mere three months, 2025 has seen 1.8 million cryptocurrency projects declared as dead coins – the highest number ever recorded in a year, accounting for 49.7% of total collapses from 2021 to 2025. The second highest was in 2024 with nearly 1.4 million 'vanished' projects, equivalent to 37.7% of total failures in the past five years.
This is also the year with the highest number of new project launches, with over 3 million tokens released to the market.
As of March 31, 1.8 million projects have become dead coins – the highest number ever recorded | Source: CoinGecko
The main reason behind this explosion is the emergence of the Pump.fun platform – a tool that allows anyone to create tokens with just a few clicks. Since then, the market has been flooded with memecoins and 'make-do' projects.
Before Pump.fun launched in 2024, the number of failed projects was relatively low. The period from 2021 to 2023 accounted for only 12.6% of the total failures over the past five years.
Another underlying reason is market instability since Donald Trump took office in January 2025. Although he publicly supports the crypto industry, the market has been in decline since that time.
How to identify dead coins and avoid 'premature death' projects
'Dead coins' are not a new phenomenon – they have existed since 2017 during the ICO boom. Before the ICO era, there were only about 29 types of tokens in the market, but this number surged to over 850 projects, of which 80% were scams.
Platforms tracking dead coins only classify a coin as 'dead' or abandoned if its trading volume is below $1,000 within three months. CoinGecko only records tokens that were previously listed on GeckoTerminal and are no longer actively traded as dead coins.
Notably, the newly released report only counts tokens from Pump.fun that have 'graduated', overlooking millions of tokens that have not yet reached this threshold. However, most of those tokens are also classified as dead coins.
The first thing that investors need to do is acknowledge the reality that 'junk' tokens abound in the cryptocurrency market. Once they have a correct understanding, investors should conduct a thorough background check on the project.
Specifically, they need to assess the financial situation of the project, review profit or cash flow reports (if any). Whether the coin is listed on reputable exchanges is also a key factor in determining its reliability. Additionally, the actual trading volume of the coin reflects the level of community interest and liquidity – if this number is nearly zero, it could be an early warning sign of the project's potential 'premature death.'
Ultimately, investors need to maintain a clear mindset and conduct independent research before making each decision. In a volatile and risky market like cryptocurrency, equipping oneself with knowledge and caution is crucial to avoid unfortunate failures.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.