Inside the Numbers: A Surprising Look at the Demise of Altcoins in the Past Decade
A new report from CoinGecko has shed light on the fate of altcoins over the last 10 years, revealing a concerning trend of failure within the sector. The report highlights the increasing number of “dead” altcoins that have either deactivated, rebranded, lost trading activity, or turned out to be scams.
According to CoinGecko’s findings, the failure rate for altcoins stands at 11.01% over the first half of the 10-year period studied. In total, 1,546 altcoins were deemed dead during this period, accounting for a significant portion of the altcoin market.
The report goes on to break down the numbers further, indicating that the years 2014 to 2016 saw the death of 96 altcoins, which represented less than 1% of the total number of altcoins that have died over the last decade. However, the second half of the period analyzed tells a different story, with over 88% of the failed cryptocurrencies coming from this period. 2019 alone saw a substantial increase in failed projects, surpassing the number of dead coins from the previous year by 50.
The most alarming statistics come from the recent bull run in 2020 and 2021. During this time, over 11,000 cryptocurrencies were listed on CoinGecko, and approximately 70% of them have since shut down. This equates to a staggering 7,530 failed projects and represents 53.6% of all dead altcoins.
The report attributes this surge in failures during the 2020-2021 period to the ease of deploying tokens and the rise of meme coins. Many meme coin projects launch without a solid product and are often abandoned shortly after. In fact, 2021 stands out as the worst year for projects launched, with 5,724 dead coins.
While there has been a slight decline in the number of failed projects in 2022 and 2023, with 3,520 and 289 dead altcoins, respectively, the overall trend remains concerning. It is yet to be seen if this decline is sustained or if a new bull phase will lead to another spike in altcoin failures.
It is important to note that the data presented in the report offers valuable insights but does not represent investment advice. Investors are urged to conduct their own research and make informed decisions when it comes to altcoin investments.