Numerous cryptocurrencies emerge in the market daily, and not all of them endure in the long run. However, a recent report suggests that the majority of cryptos introduced during the peak hype of the last bull run are no longer actively trading.
“Most dead cryptocurrencies came from projects launched during the 2020 – 2021 bull run,” the report states.
Numerous Cryptos Listed a Decade Ago No Longer Trade
According to CoinGecko’s recent report, many cryptocurrencies listed nearly a decade ago have ceased active trading in the market.
“Of the over 24,000 cryptocurrencies listed on CoinGecko since 2014, 14,039 have died,” the report states.
It notes that the rise of projects that were launched and failed was mainly due to the hype around Memecoins. Memecoins are essentially cryptocurrencies that were created as a joke.
However, cryptos launched in 2021 saw the lowest success rate, with 5,724 no longer trading as of January 2024.
Meanwhile, for those launched in 2023, only 298 cryptos are no longer trading this year, representing a failure rate of less than 10%.
In October 2022, BeInCrypto examined Memecoins to understand the strong appeal they hold for investors. Although CoinGecko highlights a high failure rate, investors, usually aware of the associated risks, are drawn to Memecoins because of their potential for swift and substantial gains.
Read more: 13 Best Altcoins To Invest In January 2024
Crypto Memecoins Can Experience Significant Gains during Bull Runs
The first Memecoin ever created was Dogecoin.
At the end of 2013, Dogecoin was trading on crypto exchanges at the $0.00037 level.
In early 2014, it surpassed $0.001 for the first time. However, it took more than four years for Dogecoin to surpass $0.01 for the first time in mid-2018. Meanwhile, in May 2021, it briefly reached around $0.74 per coin.
That represented a more than 1000x return versus its early 2014 levels.
At the time of publication, DOGE is trading at $0.08.
Meanwhile, in 2023, Pepe coin (PEPE) launched, and saw over 1,100% gains for investors in the first two weeks of trading.
Much of the hype around Dogecoin in recent times can be linked to Tesla CEO Elon Musk.
Over the years, he has regularly mentioned it in posts on X (formerly Twitter) and even in media appearances.
On January 12, BeInCrypto reported that Musk mentioned the memecoin in an X Space event, stating he still owns “a bunch of Dogecoin, and SpaceX owns a bunch of Bitcoin.”
Read more: 15 Best Penny Cryptocurrencies To Invest In January 2024
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 Conditions, Privacy Policy, and Disclaimers have been updated.
