- The number of crypto projects that collapsed in just the first three months of 2025 is the highest yearly failure rate ever recorded.
- 52.7% of cryptocurrencies since 2021 have failed, with many lacking real-world utility and surviving only on speculation.
- Experts urge caution, advising thorough research into a project’s team, whitepaper, and community before investing.
A new research by CoinGecko, the popular cryptocurrency data platform, has revealed a concerning trend in the digital asset industry. According to the platform’s research, more than fifty percent of all cryptocurrencies launched since 2021 no longer exist.
However, more concerning is that as of March 31, 2025, 1.8 million crypto projects have failed this year alone. This is the highest number of crypto project failures that has ever happened in a year and the year isn’t over yet.
Source: CoinGecko
Why are So Many Crypto Projects Failing?
According to the study, 52.7% of cryptocurrencies listed on Geckoterminal over the past four years no longer exist. Geckoterminal is a platform that monitors all crypto assets available in the industry.
These failures are another proof of the high volatility of the crypto market. With 1.8 million crypto projects failing in the first three months of 2025 alone, experts suggest that the lack of sustainability of these projects is the major cause of their failure.
They explained that many of these projects were created to solve any real-world problem. Instead, they were created as speculative investments. Hence, these tokens lose value and are abandoned by the owners and large holders when their hype fades.
However, weaker projects could start struggling to survive as authorities all over the world tighten regulations regarding cryptocurrencies. Extreme price swings is another cause of crypto project failures.
When these price swings happen, investors lose confidence in the project and abandon it, resulting into the collapse. Also, ‘rug pulls’ are another cause of crypto project failures.
In this case, developers abandon the project after raising funds from venture capitalists or other categories of investors.
Some Crypto Projects Grew amidst High Failure Rates
Meanwhile, the projects note that the crypto industry will continue to evolve despite the high failure rate. Projects built to solve real-world problems and have a well-designed structure are thriving.
Also, there’s continued adoption of blockchain technology in various sectors such as supply chains, finance, and gaming. In its recommendations, the CoinGecko study advised investors to always check a project’s team, whitepaper and the level of community engagement before investing in any project.
It also advised them not to invest in projects that promise too-good-to-be-true returns, as a high number of such projects fail.
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