First Quarter 2025: 25% of New Crypto Tokens Fail to Survive! What’s the Matter?

Updated

May 2, 2025

Gambar First Quarter 2025: 25% of New Crypto Tokens Fail to Survive! What’s the Matter?

Jakarta, Pintu News – As early as 2025, the crypto industry experienced an unprecedented wave of failures. According to a report from crypto information platform CoinGecko, around 1.8 million crypto tokens failed in just the first three months of this year. This accounts for almost 25% of all tokens issued since 2021.

Mass Failure in the Crypto Market

An analysis conducted by Shaun Paul Lee of CoinGecko shows that of the nearly 7 million cryptocurrencies listed since 2021, more than half, i.e. 3.6 million, have stopped trading completely. The mortality rate of these tokens increased significantly compared to previous years.

In the first three months of 2025, there were more token failures than in any calendar year previously recorded. This figure stands out when compared to the period from 2021 to 2023, which only recorded 12.6% of total crypto failures in the last five years.

Also Read: Ripple (XRP) Moves $1.1 Billion, What Happened?

Trump Presidency and Market Turbulence

The token’s failure coincides with broader market volatility since Donald Trump was sworn in as US President in January 2025. As Bitcoin reached an all-time high, the crypto market experienced a sharp decline.

Market conditions worsened further in March 2025, when crypto markets and stock markets experienced unprecedented volatility. This volatility was triggered by Trump’s threat to implement wide-ranging tariffs, which caused panic in various financial markets.

Easy Token Creation Leads to Market Flood

In January 2024, an easy-to-use token creation tool called Pump.fun emerged. This website made it easy to create new cryptocurrencies, resulting in a flood of memecoins and less innovative projects into the market. More than 3 million new crypto tokens were issued in 2024 alone – almost four times the number in 2023, which was only slightly more than 835,000. Prior to Pump.fun, crypto failures were less common, with numbers only in the “low six digits,” according to Lee’s analysis.

Most Pump.fun Tokens Fail to Enter Open Market

Statistics show that around 98% of tokens created on Pump.fun do not survive past the site. Even in the platform’s best week in November 2024, only 1.67% of memecoins made it to the open market.

The report shows how the combination of simple token creation software and volatile market conditions has created the perfect storm for crypto failures, with no indication that this trend will slow down as 2025 progresses.

Conclusion

Looking at the current trends, the crypto industry may need introspection and stricter regulation to prevent further failures. These failures not only hurt investors but also reduce general confidence in the potential and stability of the crypto market.

Also Read: Worldcoin: Innovating Digital Identity Verification Through Iris Scanning

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.