An 11.01% Failure Rate For The Altcoin Sector
In the last 10 years, CoinGecko’s report reveals that 11.01% of altcoins have failed. During the first half of this period, 1,546 cryptocurrencies died, which accounted for less than 1% of the total number of dead coins.
2014-2016 saw the death of 96 cryptocurrencies, while during the 2017-2018 bull run, approximately 1,500 projects shut down.
An Increase In Failed Projects Over The Last Five Years
Over 88% of failed cryptocurrencies come from the second half of the analyzed period. In 2019 alone, there were 1,150 failed projects. However, most dead coins came from the 2020-2021 bull run, with 7,530 failed projects launched during that time.
2021 was particularly bad for cryptocurrencies, with 5,724 dead coins. The report attributes this to the ease of deploying tokens and the rise of meme coins.
In 2022 and 2023, the number of failed projects declined to 3,520 and 289 respectively.
Hot Take: Altcoin Failures Decrease in Recent Years
Although there has been a decline in the number of failed altcoin projects in recent years, it remains to be seen if this trend will continue. The failure rate in 2023 stood at less than 10%, indicating a potential positive shift. However, with the possibility of a new bull phase on the horizon, it is uncertain whether altcoin failures will spike again in the future.
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