Trusted

Nearly 2 Million Crypto Tokens Collapsed in Q1 2025

2 mins
Updated by Mohammad Shahid
Join our Trading Community on Telegram

In Brief

  • CoinGecko's report reveals 2025 is the worst year for crypto project failures, with 1.8 million tokens collapsing in Q1 alone.
  • The report shows that 52.7% of tokens launched since 2021 are now dead, with meme coins notably impacted.
  • CoinGecko suggests Trump's tariff threats and recession fears may have contributed to the high failure rates, particularly in the meme coin sector.
  • promo

A new report from CoinGecko claims that 2025 has been the worst year for dead crypto projects, with 1.8 million tokens collapsing in Q1 alone. This represents 49.7% of all crypto project failures from 2021 to 2025.

CoinGecko’s analysis focused on the concrete data, not establishing proof of the culprit. Still, it hypothesizes that market volatility under Trump’s Presidency is responsible for this extreme failure rate.

Why are So Many Tokens Dying Out?

The crypto industry is no stranger to failures. For example, a few years ago, NFTs were all the rage, but more than 95% of those assets are dead.

CoinGecko’s latest report shows that 2025 has been an exceptional year in this respect. Compared to 2024, there have been fewer token launches and many more crypto project failures in Q1 alone.

Dead Crypto Projects by Year
Dead Crypto Projects by Year. Source: CoinGecko

Data from CoinMarketCap shows that over 14.65 million different tokens are active right now, and the number has been rising steadily.

One year ago, the site only tracked 2.7 million. The biggest contributor to this growth has been Solana meme coins, as that blockchain’s ecosystem now accounts for more than 60% of all tokens.

Solana Meme Coins on the Rise
Solana Meme Coins on the Rise. Source: CoinMarketCap

However, this rapid increase in crypto projects has also led to more dead tokens. The meme coin sector is especially volatile, and the industry has faced collapse on several prior occasions.

Moreover, a glut of project launches can dilute meme coins’ overall market potential, sinking prominent projects due to quality fears and diminishing returns.

CoinGecko also revealed another disturbing fact: by its reckoning, most crypto projects active since 2021 are now dead. It claims that 52.7% of all such tokens have failed and that the failure rate is increasing.

New launches still outweigh collapses, but the trend does not look sustainable.

The report proposes a clear hypothesis for this behavior. CoinGecko believes it credible that Trump’s tariff threats and ensuing recession fears are responsible for these dead crypto projects. Meme coin launches rose dramatically after his election, and market turbulence is killing them off.

To be clear, CoinGecko’s study did not attempt to prove a cause; it just analyzed the failures themselves. Complicated factors may be creating all these dead crypto projects.

Still, it identified the trends, and the hard data is convincing in its own right. The meme coin industry, as currently defined, may not last at this rate.

Best crypto platforms in Europe
eToro eToro Explore
YouHodler YouHodler Explore
Wirex Wirex Explore
Best crypto platforms in Europe
eToro eToro Explore
YouHodler YouHodler Explore
Wirex Wirex Explore
Best crypto platforms in Europe
eToro eToro
YouHodler YouHodler
Wirex Wirex
NEXO NEXO
MEXC MEXC

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

image-10-1.png
Landon Manning
Landon Manning is a Journalist at BeInCrypto, covering a wide range of topics, including international regulation, blockchain technology, market analysis, and Bitcoin. Previously, Landon spent six years as a writer with Bitcoin Magazine and co-authored a Bitcoin maximalist newsletter with 30,000 subscribers. Landon holds a Bachelor of Arts in Philosophy from Sewanee: The University of the South.
READ FULL BIO
Sponsored
Sponsored