Over Half of Crypto Tokens Launched Since 2021 Have Failed, CoinGecko Reports

The cryptocurrency industry is facing an unprecedented wave of token failures, with over 3.7 million tokens launched since 2021 now considered defunct, according to a new report from crypto data aggregator CoinGecko. The research highlights a striking attrition rate and a growing disconnect between token creation and long-term viability.

The first quarter of 2025 alone saw 1.8 million tokens fail, marking the highest number of token collapses recorded in a single quarter. This staggering figure accounts for nearly a quarter of all tokens launched since 2021, and roughly half of all token failures to date.

Token Proliferation Meets Market Reality

CoinGecko has tracked nearly 7 million tokens since 2021 through its GeckoTerminal platform. Analyst Shaun Paul Lee, the author of the April 30 report, attributes the recent spike in token failures to broader market volatility and the increasing ease of token creation, particularly through tools like Pump.fun, a platform that automates token deployment.

“Alarmingly, the first quarter of 2025 alone saw the collapse of 1.8 million tokens — the highest number of failures recorded in a single year,” Lee said.

The current wave of token deaths follows a brief surge in the market earlier this year, when Bitcoin (BTC) reached an all-time high of over $104,000 shortly after President Donald Trump’s second inauguration in January. However, that rally was short-lived as macroeconomic uncertainty and regulatory tensions sparked a broader downturn in both crypto and traditional markets by March.

Pump.fun and the Memecoin Effect

Much of the token creation explosion is being driven by Pump.fun, a platform that launched in January 2024 and enables users to create and list tokens with minimal effort. While the tool has democratized token creation, it has also led to a flood of low-effort projects, particularly in the memecoin space.

According to CoinGecko, nearly 3 million tokens were launched in 2024 alone, driven largely by Pump.fun activity. This compares to just 835,000 tokens created in 2023.

Despite the surge in token creation, Pump.fun’s success rate remains abysmally low, with about 98% of tokens failing to gain meaningful traction or volume. The platform’s best-performing week occurred in November 2024, when only 1.67% of tokens “graduated” to external trading platforms.

Historical Comparison: A Sharp Increase in Failures

CoinGecko’s data shows that cryptocurrency failure rates were significantly lower prior to 2024. From 2021 to 2023, token failures accounted for just 12.6% of all cryptocurrency collapses over the past five years.

In contrast, 2024 and early 2025 alone now represent nearly 87% of all token failures during that same period — a stark indicator of how the token landscape has changed.

“Before the rise of platforms like Pump.fun, crypto failures were largely in the six-digit range,” Lee noted.

Investor Sentiment Cooling

CoinGecko co-founder Bobby Ong noted in a March 6 report that investor enthusiasm for memecoins has waned, particularly after high-profile failures such as the Libra (LIBRA) token. This cooling trend follows a volatile start to 2025, which saw a brief spike in activity after the launch of Trump’s memecoin on January 18, but was quickly undercut by geopolitical and economic uncertainty, including Trump’s tariff threats in March.

Conclusion

The sharp rise in token failures underscores a maturing yet turbulent crypto market, where ease of entry has outpaced investor scrutiny and project sustainability. As the industry confronts regulatory challenges and a glut of low-quality launches, the coming months may prove pivotal in determining whether the sector can recalibrate toward quality over quantity.