Oh, what a splendid year it was, 2025! The crypto market, that wild and wacky jungle, decided to have a grand ol’ party-a party where tokens dropped like flies in a bug zapper! 🪰💥 According to the clever chaps at CoinGecko, a staggering 11.6 million tokens bit the dust in a single year. Jolly good show, eh?
That’s right, my dear readers, 86.3% of all crypto failures since 2021 happened in this glorious year. 2025 wasn’t just a bad year for tokens; it was their personal apocalypse! 🌋💀
Token Boom Goes Bust-CoinGecko Spills the Tea ☕️
CoinGecko’s report is a right hoot, revealing a structural farce in the token economy. Too many projects, too many meme coins, and a market more turbulent than a Dahlian plot twist! 🎢🤪
Over half (53.2%, to be precise) of all cryptocurrencies tracked on GeckoTerminal are now as inactive as a sloth on a Sunday. And guess what? Most of these failures happened in the last two years. Shocking, I know! 😱
Between 2021 and 2025, the number of crypto projects ballooned from a mere 428,383 to a mind-boggling 20.2 million. Everyone and their granny thought they could mint a token! But, oh dear, the market got saturated faster than a sponge in a bathtub. 🛁💧
Let’s look at the numbers, shall we? In 2021, only 2,584 tokens failed. Cute, right? But then, in 2022, 213,075 tokens said goodbye. 2023? 245,049. 2024? A whopping 1,382,010! And 2025? Well, it was the year of the great token massacre: 11,564,909 failures! 🩸🔪
Number of Failed Cryptocurrencies by Year
2021: 2,584 tokens 🌱
2022: 213,075 tokens 🚀
2023: 245,049 tokens 🌪️
2024: 1,382,010 tokens 🌋
2025: 11,564,909 tokens 💥What’s one project that you think will survive this madness? 🤔
– CoinGecko (@coingecko) January 14, 2026
2024 and 2025 together accounted for more than 96% of all crypto token failures since 2021. Talk about a dramatic shift! It’s like the market decided to play a game of musical chairs, and most tokens were left standing. 🎶🪑
CoinGecko’s methodology was spot-on, focusing only on tokens that had at least one trade and were listed on GeckoTerminal before becoming as inactive as a forgotten gym membership. 🏋️♂️💤
Tokens with zero trading activity? Excluded! Only the crème de la crème of Pump.fun tokens made the cut, ensuring the dataset was as credible as a Dahlian twist ending. 🧐✨
Q4 2025: The Quarter of Doom and Meme Coin Madness 😈🤡
The final months of 2025 were a real doozy. Q4 alone saw 7.7 million token failures, accounting for 34.9% of all collapses over five years. It was like a crypto Black Friday, but nobody got any deals! 🛍️💸
This coincided with the infamous October 10 liquidation cascade, where $19 billion in leveraged positions vanished faster than a chocolate cake at a children’s party. It was the largest single-day deleveraging event in crypto history. 🍰🙈
The shock exposed the vulnerabilities of thinly traded tokens, many of which:
- Lacked liquidity (oops!) 💸
- Couldn’t handle the volatility (drama queens! 👑)
CoinGecko noted that the meme coin sector, which had grown faster than a child on a sugar rush, was hit particularly hard. 🍭💥
The rise of easy-to-use launchpads like Pump.fun made it a breeze for anyone to launch a token. While this democratized experimentation, it also flooded the market with projects as viable as a chocolate teapot. 🍫🫖
This is huge.
The 11.5M token failures in 2025 expose a policy vacuum.1️⃣ Zero regulation on launching a token. Anyone can deploy one in minutes.
2️⃣ Platforms like Pump.fun massively lower friction, enable mass launches, and take no accountability for outcomes.…
– Sapna Singh (@AdvSapna_) January 14, 2026
DWF Labs’ Andrei Grachev called it a “crime szn,” pointing to the systemic pressures facing founders and investors. It was hard to get attention, liquidity, or market fit. The market became all about Bitcoin, blue chips, and gambling. Retail liquidity? Up in smoke! 🦅🟠
Basically it created a “crime szn”, failure rate is so high, which affects founders and investors – hard to get attention, hard to get liquidity, hard to find a market fit.
Market is BTC, blue chips and gambling.
Retail liquidity is being burned
Liquidity wars are ongoing– Andrei Grachev 🦅🟠 $FF (@ag_dwf) January 15, 2026
Capital is now gravitating toward Bitcoin, established assets, and short-term trades, leaving newer projects high and dry. The long-term health of token creation practices? Looking as shaky as a three-legged chair. 🪑😬
Will the Token Failure Cycle Continue in 2026? 🤔🔮
The forces behind 2025’s collapse show no signs of letting up. Token creation remains as easy as pie, retail liquidity is scattered, and market attention is stuck on Bitcoin and blue chips. It’s like a broken record, but less musical. 🎵💿
CoinGecko’s data shows that token supply has outpaced market capacity faster than a cheetah on Red Bull. With 20.2 million projects by the end of 2025, even a modest continuation of launches could push failure rates higher in 2026. Unless demand and liquidity stage a miraculous comeback, of course. 🏃💨
I hope we fix this in 2026.
Most launches in 2025 didn’t fail because the “market was bad.”
They failed because the launch design was structurally short-vol and short-trust.Here are the recurring launch patterns that nuked most of them ↓
1️⃣ High FDV, low float:
You’re…– Stacy Muur (@stacy_muur) December 15, 2025
Market stress events remain a ticking time bomb. The October 10 liquidation cascade showed how quickly things can go south. Tokens without liquidity or committed users were hit hardest, suggesting more volatility could trigger another round of mass failures. ⏰💣
Andrei Grachev warns that the current environment is structurally hostile to new projects, with ongoing “liquidity wars” across crypto markets. Retail capital is thinning, and competition is fiercer than a Dahlian villain. Without changes, the market risks repeating the same cycle: rapid issuance, brief speculation, and eventual collapse. 🔄💥
While some argue this purge will strengthen crypto by eliminating weak projects, the data suggests the adjustment is far from over. If token creation continues to outpace liquidity growth, 2026 may see fewer launches but not necessarily fewer failures. 🧹🧨
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2026-01-15 15:28