Over 50% of all cryptocurrencies launched since 2021 are currently deprecated. More surprising trends emerged in 2025, with the percentage of failed tokens released this year reaching the same level in the first five months.
That percentage rises naturally for more than half of the year. A representative from Binance and Dune Analytics told Beincrypto that these obstacles are another reminder of the need to launch a viable project backed by solid toconomy and a robust community.
Ghost tokens skyrocket
A recent Coingecko report revealed some jaw drop data. Of the roughly 7 million cryptocurrencies listed on Geckoterminal since 2021, 3.7 million have since died.
Several factors are taken into consideration when assessing whether a coin has reached its end.
“Coins are classified as “dead” when they lose all their utilities, liquidity, and community involvement. Key indicators include zero trading volumes, abandoned developments (GitHub will not commit for more than six months).
A significant 53% of the listed cryptocurrencies have failed, with most collapses concentrated in 2024 and 2025. In particular, more than 1.82 million tokens had already been suspended in 2025, significantly outpacing the roughly 1.38 million obstacles recorded throughout 2024.
Seven months before the year, this trend of failures this year continues to rise.
Why do so many crypto projects fail?
Experts attribute the high failure rates of cryptocurrency projects, often called “ghost coins,” to a variety of factors, including broader macroeconomic conditions that affect the crypto market.
Coingecko specifically proposed a potential link between economic concerns such as tariffs and fears of recession. This noted that Meme Coin started after a particular election and said that the subsequent market volatility would likely contribute to their decline.
However, not all liability is placed in a larger recession. Other aspects can contribute to the failure of these projects.
“The general factors include the inability to find fit for the product market. There is abandonment (rag pull) by developers, focusing on negligible interest from users and investors, or short-term speculation without a long-term roadmap. I told Beincrypto.
The rapid rise of Ghost Tokens has also been accompanied by the exponential launch of a large number of projects, particularly since its launch in 2024.
Lifetime ratio analysis
Last year, following the spread of memecoin, it was novel in itself. This new story appeared, especially after the release of Pump.fun.
According to Coingecko data, three million new tokens were listed in Coingecko in 2024 alone. Half of these projects died, while the other half survived. However, the situation in 2025 appears to be unstable.
The number of new token launches remains high, but the number of obstacles is roughly comparable, with launches just over 1,000 people.
“In ecosystems with fewer barriers to token creation, the number of ghost coins is visible the most. In general, a platform that is very easy and inexpensive to fire new tokens can see the most abandoned coins. I explained.
The Greater Meme Market also took a special blow to its popularity.
As of March 5, Meme Coin Colid’s market capitalization had dropped sharply to $540 billion, a 56.8% decline from its peak of $125 billion on December 5, 2024.
Certain token categories are hit harder than others.
Music and Video Tokens among the most difficult hit categories
A 2024 Bitke report showed that video and music were a prominent category with many failed cryptocurrency projects, reaching a 75% failure rate. This proportion of characterization suggests that niche-focused crypto ventures often face challenges in achieving long-term viability.
“These niches face a gap between adoption and utility. Music tokens struggle to compete with Spotify/YouTube, but the ‘listening-to-year’ model often lacks demand.
A Binance spokesman noted that legal and technical hurdles, such as music licensing and the critical resources needed to stream video, have complicated the expansion of decentralized alternatives.
They further explained that many projects struggle to remain sustainable without substantial user recruitment or strong network effects.
“This emphasizes that good concepts alone are not enough. Crypto projects must compete with established Web2 platforms, navigate complex industry challenges, and provide real-world utilities to succeed. Even well-intentioned initiatives risk waning into ghost tokens, not tailoring user behavior or market needs.
Despite the disappointing number of failed tokens, this situation provides important insights to build resilient projects that can withstand unfavourable market conditions.
What can we learn from the catastrophic token collapse?
Future creators of tokens can learn important lessons from once-popular projects that ultimately failed. The negative consequences these ventures experience can, particularly in serious cases, motivate new projects responsibly and avoid similar pitfalls.
Binance refers to the infamous Ghost Coin Case BitConnect and OneCoin.
“BitConnect, once a top 10 coin, collapsed in 2018 after being published as a Ponzi scheme that promises a 1% return every day. Investors lost nearly $2 billion, a spokesman explained.
These examples provide valuable lessons for individual investors trading tokens, whether they are newly launched or more established.
Important lessons from Ghost Tokens
While we are concerned, the increase in the number of ghost coins often serves as identifiable warning signs, which often precede the downfall of these cryptocurrencies, often serve as identifiable reminders.
These cases highlight the need for rigorous research, the need to examine underlying principles and maintain a careful perspective, especially when investment returns appear to be unrealistically high. Risk management and prioritization of sustainable long-term factors should outweigh short-term speculative trading.
Binance particularly emphasized the importance of “doing your own research” (Dyor) when evaluating cryptographic projects.
“In essence, this means reviewing the white paper, verifying whether the project solves real problems, verifying team reliability, verifying toconemics and supply distribution, and checking community and development activities,” Binance said. Navigate spaces safely and successfully. ”
Ultimately, the prevalence of ghost tokens highlights a critical truth for crypto participants. Intensive research and fundamental values are paramount to identifying lasting projects.
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