More than half of the digital projects launched since 2021 have ceased to exist, highlighting the high investment risks for participants in the crypto market, said analysts from the CoinGecko platform. In 2021, the digital asset market experienced a sharp increase in the number of new crypto projects, which was associated with the availability of platforms for creating tokens such as Binance Smart Chain and Ethereum. The surge of interest in creating new digital assets can also be explained by the launch of the Rump.fun trading platform based on the Solana blockchain, which simplified the process of creating tokens, leading to a flow of meme coins and projects with low issuance costs. In 2021, 428,383 projects were listed on GeckoTerminal, and by 2025 this number had increased to nearly 7 million, CoinGecko noted. Many of these projects, including fraudulent 'rug pulls' where developers disappear with the collected funds of investors, failed to attract sufficient liquidity or user audience. Nearly 90% of the vanished tokens had a daily trading volume of less than $1000, indicating their initially low market viability.
BeInCrypto analyst Shaun Lee noted that the market is oversaturated with projects that have no real value, especially among memecoins and DeFi. He reminded of the success of certain crypto projects, such as Aave and Hyperliquid, but emphasized that most new tokens do not withstand competition due to weak liquidity and insufficient innovation. A similar viewpoint was expressed by David Sacks, a special advisor to Donald Trump on cryptocurrencies, who stated that 'the ease of launching dubious tokens, low entry barriers, and lack of adequate regulation have led the crypto market to overheating and flooding with junk assets.' Despite the mass collapse affecting most new crypto projects, CoinGecko experts believe that established cryptocurrencies like Bitcoin and Ethereum continue to strengthen their positions. However, the situation serves as a warning to investors that the digital asset market remains largely a 'gray and high-risk area,' especially regarding new and lesser-known crypto initiatives. Earlier, entrepreneur David Sacks stated that the extremely shortsighted view of the outgoing Biden administration on Bitcoin has led the United States to lose more than $17 billion.
Source - https://bits.media/more-than-50-started-in-the-last-four-years-cryptoprojects-collapsed/
