- Out of the 8,000 cryptocurrencies included in CoinGecko, 951 coins were enlisted as dead coins or failed coins.
- The current number of dead coins shows a 300% drop from 2021.
- The coins which were inactive in trading for the last 2 months were labeled as dead.
According to the reports by the independent data aggregator, CoinGecko, the number of dead cryptocurrencies in 2022 dropped 300% from 2021. Though more than 8,000 digital currencies were enlisted on CoinGecko, the current list indicated that almost 40% of coins have been removed from the list.
On November 29, CoinGecko released a notification declaring 951 cryptocurrencies as “dead” or “failed coins”. The list suggests that there had been a significant drop in the value from 2021; in 2021 the number of failed coins was 3,322.
Notably, the research told that despite the spike in the number of newly added cryptocurrencies in 2021, the current list shows less number of coins after removing the dead coins:
The last bull market run that started in November 2020 saw a spike in cryptocurrencies with more than 8000 cryptocurrencies listed in 2021. As of today, nearly 40% have been deactivated and delisted from CoinGecko.
Further, the research mentioned the touchstone by which the cryptocurrencies were classified into active or dead. As per the reports, the cryptocurrencies that have been inactive from trading activities for the past two months were enlisted in the group of dead coins. Also, those coins that requested a deactivation were also categorized as failed coins.
Riyad Carey, the research analyst at Kaiko, the crypto data firm, said that “it’s relatively simple for someone to create a token. But these tokens can obviously lose interest extremely quickly”.
Significantly, CoinGecko cited one of the major reasons for the huge number of dead coins- the “meme coin season”. The platform said that a lot of valueless coins or immediately launched coins for momentary benefits were brought by anonymous developers. Most of these developers had little commitment to their projects. Eventually, the number of active coins decreased and finally ended with the title of dead coins.