Number of ‘Dead’ Coins Tripled in 2022 Compared to 2021 Despite Crypto Crash

New research has highlighted the number of cryptocurrencies that have failed to meet expectations since launch amid the prevailing bear market of 2022.

Specifically, there are about 951 cryptocurrencies listed on the pricing page Queen Gekko The year 2022 has been declared “dead” or “failed coins,” according to new research published November 29.

In identifying dead coins, the study noted that it reviewed cryptocurrencies that may have been off the site due to a lack of trading activity over the past two months. Meanwhile, dead tokens were issued after being deemed a scam or requesting deactivation.

“The recent bull market that began in November 2020 saw a peak in listed cryptocurrencies, with over 8,000 cryptocurrencies listed in 2021. As of today, nearly 40% have been deactivated and delisted from CoinGecko,” the research said.

Graph of the number of dead coins. Source: CoinGecko

According to the study, the number of dead coins for 2022 is a significant drop from the 2021 figure of 3,322. It should be noted that over the past nine years, 2021 recorded the highest number of dead coins among the mainstream bull market.

The rise of meme coins

The research indicated that the large number of dead coins in 2021 could be linked to the influx of meme coins into the market. Notably, most meme coins lack significant value with anonymous developers along with the need for greater commitment to develop them.

After the success of meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB), most entities have tried to replicate the success. Interestingly, the researchers note that excluding the growth in 2021, the average number of dead coins was 947 between 2018 and 2022.

Despite the 2022 bear market, a previous Coinphony report indicated that more cryptocurrencies are emerging, reaching 22,000 points on CoinMarketCap.

In general, cryptocurrency advocates have argued that as the sector matures, the number of dead coins should increase. There is a consensus that as the industry matures, assets with minimal utility are likely to be eliminated.

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The number of “dead” coins subsequently decreased by 3 times in 2022 compared to 2021 although the cryptocurrency crash first appeared on Coinphony.

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