Crypto Bloodbath: Half of All Crypto Tokens Died in 2025
- Over half of all cryptocurrencies launched since 2021 have failed, with the vast majority of these ‘crypto deaths’ occurring in 2025.
- The surge in failed crypto tokens is attributed to the rise of meme coins and easy token launch platforms like pump.fun, leading to a flood of low-effort experimental projects.
- A $19 billion deleveraging event in crypto, the ‘liquidation cascade’ in October 2025, triggered a significant downturn, wiping out 7.7 million tokens in the fourth quarter of 2025 alone.
In a stark warning to crypto investors, new data reveals that more than half of all cryptocurrencies ever launched are now defunct. A staggering 11.6 million crypto tokens died in 2025, representing 86.3% of all token failures in the past five years, painting a grim picture of the risks associated with investing in less established digital assets. This article dives into the causes behind this mass extinction event, the implications for the wider crypto market, and what investors can learn from this period of unprecedented crypto project failures.
The Great Crypto Die-Off of 2025: A Token Token Tsunami
The analysis by CoinGecko’s analyst Shaun Paul Lee examined token listings on GeckoTerminal since 2021. Of the nearly 20.2 million tokens that entered the crypto market, 53.2% are no longer actively traded, or longer actively traded. A staggering 11.6 million token died in 2025 alone. The data counted projects that had at least one active trade before going silent. The end of 2025 marked a low point, with 7.7 million tokens failing in just three months, about 35% of all crypto project failures since 2021.
Meme Coins, Launchpads, and the Rise of Experimental Projects
One key driver behind the massive increase in token deaths in the crypto market was the rise of low-effort meme coins and experimental projects launched through crypto launchpads like pump.fun. These platforms dramatically lowered the barriers to token creation, leading to a wave of speculative assets with little to no development backing. The rise of meme coins fueled a flood of low-effort projects that quickly collapsed. Many of these tokens never made it past a handful of trades before disappearing.
Key Data Comparison
| Year | Number of Failed Projects |
|---|---|
| 2021 | 2,584 |
| 2024 | 1.3 Million |
| 2025 | 11.6 Million |
The October 2025 Liquidation Cascade and its Aftermath
The fourth quarter of 2025 was particularly brutal, with 7.7 million tokens disappearing from the crypto market. This collapse closely followed the deleveraging event in crypto, the October 2025 “liquidation cascade,” when $19 billion in leveraged positions were wiped out in a single day. Lee described this as the largest deleveraging event in crypto history, which shook a crypto market already overexposed to short-term bets. The event caused significant market volatility.
KuCoin’s Success Amidst Wider Crypto Market Volatility
Despite the carnage in the broader crypto market, some crypto exchanges thrived. KuCoin recorded over $1.25 trillion in trading volume in 2025, equivalent to roughly $114 billion per month. This performance translated into an all-time high share of crypto exchange volume. KuCoin’s activity expanded faster than aggregate crypto exchange volumes, which slowed during periods of market volatility. Spot and derivatives volumes were evenly split. Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond Bitcoin and Ethereum.
ETF Inflows and the Return of Institutional Capital to Bitcoin and Ethereum
Despite the failure of many altcoins, Bitcoin etfs and Ether ETFs logged their best week since October 2025, pulling in a combined several billion dollars in new inflows. Bitcoin etfs drew $1.42 billion, led by BlackRock’s IBIT with $1.03 billion. Ethereum etfs attracted $479 million, including $219 million into BlackRock’s ETHA. Analysts say the inflow reflected a return of longer-term institutional capital rather than short-term arbitrage trades. This bullish trend suggests continued confidence in established digital assets like Bitcoin and Ethereum.
Deep Dive: Market Analysis
The crypto market is showing signs of both risk and resilience. While the failure rate of smaller crypto tokens is alarming, the continued strength of Bitcoin, Ethereum, and select crypto exchanges suggests a flight to quality. The deleveraging event in crypto of October 2025 highlighted the dangers of excessive leverage. The trading volume data indicates that the wider crypto market is becoming more sophisticated, with institutional investors playing an increasingly important role. Stablecoins like USDC and USDT found product-market fit and are becoming important, while smaller projects are losing ground. The perpetual futures market is growing.
Frequently Asked Questions
Does crypto go up after halving?
Historically, Bitcoin’s price has tended to increase in the months following a halving event, although past performance is not indicative of future results.
What is Elon Musk’s favorite crypto coin?
Elon Musk has publicly supported Dogecoin, but his preferences may change over time.
What is the 1% rule in crypto?
The 1% rule suggests investing no more than 1% of your total investment portfolio in any single cryptocurrency, to manage risk.
What crypto is halving next?
Bitcoin is the most well known coin that undergoes the halving process. Please refer to an updated source for the next halving event.
Conclusion
The crypto landscape is evolving rapidly, with 2025 marking a period of significant consolidation. While the high failure rate of lesser-known crypto tokens underscores the importance of due diligence, the continued growth of established cryptocurrencies and the entrance of institutional players signals a maturing market. As the crypto market navigates regulatory hurdles and technological advancements, investors should remain cautious and focus on projects with strong fundamentals and long-term viability.
