Almost 40% of cryptos listed on CoinGecko in 2021 are now ‘dead coins’
More than 8K cryptocurrencies were listed on pricing site CoinGecko during the 2021 bull market, though over 3.3K of them, or nearly 40%, have since been deactivated and delisted amid one of the worst downturns the industry has ever seen.
That’s 2.5x higher than the amount of tokens listed in 2020 that ended up failing, aka “dead coins,” and 3.5x higher than the year-to-date figure, Julia Ng, who leads Growth Marketing at CoinGecko, wrote in a study published Nov. 29.
The global crypto market cap stood at only $866.4B after peaking at around $3T in November 2021, according to CoinMarketCap data. The sharp decline in the value of cryptos in a short period of time doesn’t necessarily reflect any fundamental or structural change to the blockchain ecosystem took effect, just as the stock market’s performance doesn’t always reflect the health of the economy.
Bitcoin (BTC-USD), which is seen as a key gauge for the cryptoverse and broader risk tolerance, changed hands at $17.8K as of Wednesday afternoon, down substantially from its November 2021 all-time high of $68.9K. That’s a more than 70% peak-to-trough drop. Many major tokens mirrored BTC’s volatile path as seen in this chart.
Based on CoinGecko’s methodology, cryptos may be taken off the site due to a shortage in trading activity within the last two months. A token might also get removed if projects are revealed to be a scam, or if projects request to be deactivated.
“Excluding the anomaly year of 2021, an average of 947 cryptocurrencies listed are dead and end up failing in the last five years, between 2018 to 2022,” Ng noted.