Cryptocurrency, the once-booming digital asset market, has dramatically shifted fortunes. A recent study delved into the lifespan of cryptocurrencies listed on CoinGecko, a cryptocurrency data aggregator. Since 2014, more than 14,000 out of 24,000 listed cryptocurrencies have become inactive, signifying a failure rate exceeding 50%. This trend highlights the volatility and unpredictability inherent in the cryptocurrency market.

Significantly, the period between 2020 and 2021, marked by a bullish run, witnessed the launch of over 11,000 cryptocurrencies. Sadly, about 70% of these are now defunct. Hence, it accounts for 53.6% of all dead cryptocurrencies on CoinGecko. 

The ease of deploying tokens during this period and the surge in popularity of memecoins contributed to this high failure rate. Many of these memecoins, launched without solid product backing, were quickly abandoned.

Moreover, the previous bull run of 2017-2018 saw similar trends. Of the over 3,000 cryptocurrencies introduced, around 1,450 ceased operations, mirroring their successors’ 70% failure rate. This pattern underscores a persistent challenge in the crypto world – the high risk of project discontinuation.

However, there’s been a noticeable shift in recent times. The year 2021 proved particularly brutal, with 5,724 listed cryptocurrencies dying. It represents over 70% of that year’s listings, marking it the worst year for cryptocurrency launches. In contrast, 2022 fared slightly better,

with a failure rate of about 60%, seeing 3,520 of its listed cryptocurrencies become inactive.

Additionally, the trend shows a significant decrease in failure rates in 2023. Only 289 of the total 4,000 cryptocurrencies listed that year have failed at a rate of less than 10%. This decrease could indicate a maturing market or stricter listing standards. It suggests a cautious optimism for newer projects, as the failure rate drops sharply compared to previous years.