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More than 3.7 million cryptocurrency tokens have failed since 2021, with nearly half of these collapses occurring during the Pump.fun-driven memecoin surge. This staggering figure highlights the challenges many crypto projects face in sustaining themselves in an increasingly competitive and volatile market.

Sharp Increase in Token Failures

New research by a leading crypto pricing platform reveals that nearly 1.8 million tokens failed in the first quarter of 2025 alone. This accounts for 49.7% of all token failures recorded between 2021 and 2025. In 2024, approximately 1.4 million projects also collapsed, representing 37.7% of failures. Together, these two years have witnessed the majority of token shutdowns in the crypto market.

According to the report, this sharp decline in survivability is linked to broader market turbulence. Notably, the downturn in the crypto market following significant geopolitical events, such as Donald Trump’s inauguration in January 2025, played a role in exacerbating the challenges faced by many projects.

Explosive Growth in New Token Launches

The number of new cryptocurrency projects has surged in recent years, reaching unprecedented levels. In 2021, just over 428,000 tokens were listed on major crypto price aggregator platforms. By 2025, that figure had skyrocketed to nearly seven million. Much of this growth is attributed to the launch of Pump.fun in 2024, a platform that simplified the token creation process. However, this ease of entry also led to a flood of low-effort projects and memecoins entering the market.

“Before Pump.fun launched in 2024, the number of project failures was significantly lower. From 2021 to 2023, failures remained in the low six digits, accounting for just 12.6% of total token deaths.”

Defining “Dead Tokens”

The research defines “dead tokens” as those no longer actively traded on exchanges. To qualify as a dead token, the asset must have had at least one trade before becoming defunct. This metric underscores the sheer volume of projects that fail to gain lasting traction in the market.

Key Takeaways for Crypto Investors

For investors navigating the cryptocurrency market, the data highlights the importance of due diligence. With the rise of low-effort projects and memecoins, identifying sustainable and well-founded projects has become more critical than ever. Consider the following tips to make informed investment decisions:

  • Research the Team: Verify the credentials and experience of the project’s team members.
  • Evaluate the Use Case: Ensure the project offers a clear and practical solution to a real-world problem.
  • Check for Community Support: Active and engaged communities can be a good indicator of a project’s potential.
  • Monitor Market Trends: Stay updated on broader market conditions that could impact your investments.

As the cryptocurrency space continues to evolve, understanding the risks and challenges associated with new projects can help investors make smarter choices.

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