The data platform CoinGecko published a new report revealing that 1.8 million cryptocurrencies failed only in the first quarter of 2025, representing 25% of all tokens launched since 2021. 🔥💀🔥
The mortality rate of altcoins has reached the highest level ever recorded in a single year, raising serious concerns about the sustainability of the newly created token ecosystem — especially those originating from automated creation platforms like Pump Fun.
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📉 1.8 million tokens failed in just 3 months
According to the report:
💥• CoinGecko has tracked over 7 million tokens since 2021
💥• 3.7 million of these tokens have already disappeared and are considered failures
💥• 1.8 million tokens failed just in the first quarter of 2025, making this the worst start to a year ever recorded
“🗣️It is alarming that 1.8 million cryptocurrency projects have failed just in the first quarter of 2025. This is the highest number of failures ever recorded in a single year and represents a quarter of all tokens launched since 2021,”
stated Shaun Paul Lee, analyst at CoinGecko.
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⚙️ Pump Fun and the effect of mass token manufacturing
According to the report, the explosive increase in failed tokens is directly linked to the growth of tools like Pump Fun, launched in January 2024.
💥• The platform allows any user to create tokens with a few clicks, without any technical requirements
💥• Since its launch, over 3 million new tokens have been created in 2024
💥• The failure rate of projects launched via Pump Fun is over 98%
This dynamic fuels a cycle of creating memecoins and low-effort projects that enter the market with minimal liquidity, little or no real utility, and early abandonment.
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📊 Technical diagnosis and market impact
The proliferation of tokens and their rapid extinction not only affects the reliability of the ecosystem but also:
💥• Increases market noise, making it difficult to track legitimate projects
💥• Facilitates scams and exit scams disguised as “community” tokens
💥• Creates illusions of liquidity on networks like Solana and Base, where these platforms operate more strongly
Experts point out that while the cost of launching a token has been drastically reduced, the cost of reputation and trust in the sector is rising.
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✅ Final diagnosis
The first quarter of 2025 exposed the fragility of the new generation of altcoins, fueled by instant issuance platforms.
The ease of creation has not been accompanied by responsibility, transparency, or building real value.
As the sector continues to innovate, the record number of failures serves as a warning:
unrestricted access to creation does not guarantee access to relevance.
The era of fabricated tokens has reached its limit — and the market is reacting.