Earlier you could read in the altcoin news that more than 5,000 new cryptocurrencies were added to the total crypto market in the past year. About a year ago the counter was still at 21,555, but there are already 22,066 different digital currencies in existence, according to data from CoinMarketCap. Despite the fact that 2022 was all about falling prices, the number of tokens continues to rise considerably.
It is of course not the case that all these 22 thousand different crypto currencies actually have value. The number that does have this is of course still debatable and fodder for an interesting discussion. CoinGecko has exposed the number of digital currencies that have failed to meet expectations since going live amid the prevailing bear market in 2022.
Dead crypto
As many as 951 of the 2022 newcomers on CoinGecko have been declared ‘dead’ or ‘failed coins’. These are also the crypto coins that have been removed from CoinGecko.
There are three reasons why a crypto can be deleted. First, a coin can be removed if it does not reflect any trading activity in the past two months. Secondly, it can be removed if it is labeled as a scam or via the news or direct reports to CoinGecko from verifiable sources. back pull. Finally, a project itself can also request to be removed from the site.
The research said the following about the number of dead coins of 2021:
“The latest bull market, which started in November 2020, saw a spike in listed cryptocurrencies with over 8,000 cryptocurrencies in 2021. As of today, nearly 40% have been deactivated and removed from CoinGecko.”
To be precise: 3,322 of the more than 8,000 new coins have since been removed from CoinGecko. In the past year there were ‘only’ 951 dead cryptos, which is a significant decrease compared to 2021. However, much fewer new crypto coins were launched, so this ratio is not even that remarkable.
The rise of meme coins
The rise of the meme coins is the most obvious reason why there are so many dead coins coming out of 2021. In 2021, many tokens with little to no value or a directly observable purpose were launched by various anonymous developers.