- CoinGecko reports increased crypto failures, linked to Pump.fun token creation.
- Over half of crypto projects failed since 2021.
- Market dilution tied to meme coin surge.
PANews reported on May 1, 2025, that CoinGecko’s latest research shows over half of crypto projects have failed since 2021.
CoinGecko’s report highlights concerns about market sustainability, exposing the vulnerability of projects solely based on speculation.
Over 1.38 Million Projects Failed in 2024
According to CoinGecko, more than 52% of cryptocurrency projects listed since 2021 have ceased trading. The surge in project failures is primarily attributed to platforms like Pump.fun, which rapidly increased token creation. In 2024 alone, over 1.38 million projects failed, constituting 37.7% of the total during that period. Notably, the project’s launch in mid-2024 marked a steep increase in token creation, coinciding with a rise in projects without solid use cases or communities.
The proliferation of meme coins and speculative assets after Pump.fun’s emergence has led to questions about the crypto market’s health. The failure rate in Q1 2025 suggests more than 1.8 million tokens shut down, indicating a 49.7% increase over five years. Market challengers attribute these failures to speculative interests and untested market entrants.
“The staggering statistics reveal that over 52.7% of cryptocurrencies listed since 2021 have become inactive, marking a concerning trend in the cryptocurrency market.” — CoinGecko Leadership Team, Research Team, CoinGecko Report
Potential Regulation Amid Explosive Token Creation
Did you know? Pump.fun, a Solana-based platform, notably accelerated token creation, leading to an unprecedented spike in project failures during 2024–2025.
CoinMarketCap data shows Solana (SOL) priced at $148.82 with a market cap of $77.07 billion and a 2.60% market dominance as of May 1, 2025. The 24-hour trading volume hit $3.03 billion, while price changes over 90 days are -37.03%. The max supply remains unlimited with a circulating supply of 517.86 million.
The Coincu research team anticipates a potential regulatory clampdown on unscrupulous token launches. They suggest that stringent screening and investor education are imperative to curb future failures. These measures aim to restore confidence in an ecosystem marred by increasing misuse of rapid token creation platforms.
Source: https://coincu.com/335150-cryptocurrency-failures-coingecko-report/