A recent study shows that a sizable number of cryptocurrencies have failed to live up to expectations since their launch amid a market downturn in 2022.
Specifically, about 951 ” cryptocurrencies listed on valuation website CoinGecko throughout 2022 have been declared “dead coins” or “failed coins. When identifying dead coins, the researchers noted that they consider cryptocurrencies that may have been removed from the site due to a lack of trading activity within the past two months, and other tokens. disabled notification after being deemed fraudulent or requesting deactivation.
“The most recent bull market that started in November 2020 saw a huge spike in the number of cryptocurrencies listed , with more than 8,000 by 2021. But so far, almost 40% have been lost. deactivate and delist from CoinGecko,” the study reads.
Even so, the number of dead coins in 2022 is still significantly lower than the figure of 3,322 in 2021. Notably, in the past 9 years, 2021 has been the year with the highest number of dead coins in the context of a flourishing bull market. onion.
The rise of memes
Research indicates that the high number of dead coins in 2021 may be related to the influx of meme money into the market. Aside from the success of memes like Dogecoin (DOGE) and Shiba Inu (SHIB), most meme coins lack significant value because of anonymous developers, in addition to needing more significant commitments. to develop them.
Despite the 2022 bear market, a previous report by Finbold pointed to many emerging cryptocurrencies reaching the 22,000 mark on CoinMarketCap. In general, crypto advocates assert that as the sector matures, the number of dead coins will increase, assets with minimal utility will be wiped out.