Over Half of All Crypto Tokens Have Failed Since 2021
Let’s not sugarcoat it—crypto is brutal. According to a new report from CoinGecko, over 50% of all crypto tokens launched in the past five years have already failed.
Yep, more than 3.7 million out of the nearly 7 million tokens listed on its GeckoTerminal DEX tracker are now considered defunct. That means these tokens are no longer actively traded, have hit rock-bottom liquidity, or have simply disappeared from the charts.
And if you thought this was a slow, drawn-out decline… think again.
2025: The Year of the Great Crypto Wipeout
Here’s what’s really eye-opening: Nearly half of all token failures recorded since 2021 happened in Q1 2025 alone.
- 1.8 million tokens died between January and March 2025.
- In all of 2024, about 1.4 million tokens failed.
- From 2021 to 2023? Only 12.6% of token deaths happened during that entire period.
In short, 2025 is shaping up to be crypto’s biggest cleanup year yet.
What’s Fueling the Token Apocalypse?
So what’s behind this ridiculous rise in dead tokens?
1. Pump.fun and the Memecoin Madness
The Solana-based Pump.fun launchpad was designed to make it easy—almost too easy—to spin up new tokens. It’s like the Canva of crypto: zero coding, launch in seconds, and boom—you’ve got a meme coin.
But ease of access is a double-edged sword. It opened the floodgates to:
- Low-effort meme coins
- Scams and rug pulls
- Copycat “celebrity” and “PolitiFi” tokens
- Hype-driven tokens with zero utility
When there’s no roadmap, no community, and no real use case, these tokens inevitably fizzle out, especially during market downturns.
2. The Trump and Melania Token Boom
Right around the time Donald Trump’s inauguration in January 2025, official memecoins like $TRUMP and $MELANIA hit the scene. These tokens pulled massive trading volumes—but they also kicked off another wave of hype-driven copycats.
CoinGecko notes that this influx added to market fatigue and helped tank token survivability rates.
3. The LIBRA Scandal and Market Panic
Don’t forget about the LIBRA token scandal, which turned out to be a massive rug pull. It shattered confidence in the so-called “PolitiFi” sector and triggered widespread panic—especially among new retail investors who got burned.
More Launches, Less Longevity
Despite the carnage, 2024 saw the highest number of token launches ever: over 3 million new projects.
But more doesn’t mean better.
In fact, the token failure rate skyrocketed from just 0.5% in 2021 to 25% in Q1 2025. This suggests the market is getting saturated with short-lived, hype-fueled projects that collapse within weeks—or even days—of launching.
What This Means for Investors
This report is a reality check, especially for anyone chasing the next 100x meme coin. Here’s what it tells us:
Do Your Research
If you’re not diving into tokenomics, team credibility, and roadmap viability, you’re gambling, not investing.
Be Wary of Meme Coins
Sure, some meme tokens hit it big. But the data doesn’t lie: most of them will crash and burn—especially the ones without utility or staying power.
Use Platforms with Strong Vetting
Consider sticking to projects that go through rigorous listing and security checks—many of the failed tokens were never even on major exchanges.
Institutional Money Wants Real Use Cases
As we’ve seen with Ripple, XRP Tracker Funds, and Ethereum L2s, institutional investors are focusing on scalability, compliance, and real-world utility. That’s where long-term opportunity lies.
Final Thought: It’s Time for a Crypto Reality Check
With over 3.7 million tokens now part of the crypto graveyard, the message is loud and clear: Hype doesn’t last, but utility might.
We’re entering a more mature phase of crypto. Survival won’t be about meme power or celebrity hype—it’ll be about solving real problems with real tech.
Would you like a follow-up post on how to identify a strong token in today’s meme-heavy environment?
