Crypto Tokens Plummet: Nearly 2 Million Fail in Q1 2025

CoinGecko’s report shows a massive collapse of crypto tokens in Q1 2025, with 1.8 million failing, marking 49.7% of all project failures from 2021-2025. The analysis suggests that market volatility during Trump’s presidency could be a contributing factor. While there are over 14 million active tokens, new projects face increased risks of failure, especially in the meme coin sector. The impending sustainability of the industry raises red flags for investors.

A recently released report by CoinGecko indicates that 2025 is quite a disastrous year for the crypto world, with almost 2 million crypto tokens collapsing in the first quarter alone. This staggering number accounts for nearly 50% of all crypto project failures recorded between 2021 and 2025. While CoinGecko does not directly point fingers at specific causes, it posits that the market volatility seen during Trump’s presidency could be a significant factor behind this alarming trend.

Failures in the cryptocurrency industry are not exactly new, though. Look back a few years, and it’s clear that NFTs were wildly popular at that time; however, over 95% of those assets have since vanished. CoinGecko’s findings paint a grim picture for 2025, showing a sharp decline in new token launches while simultaneously spotlighting a surge in project failures in just the first quarter.

Current data from CoinMarketCap suggests there are over 14.65 million active tokens right now—a significant jump from the 2.7 million active a year ago. The rapid expansion seems primarily driven by Solana meme coins, which now represent more than 60% of the total token count. However, with this influx of new projects comes a rising number of failures. The meme coin sector is particularly susceptible to rapid ups and downs, and the industry has endured several collapses in the past.

Additionally, the sheer volume of new project launches can actually harm the market for meme coins, potentially diminishing the allure of prominent projects. Quality concerns and reduced returns from a saturated market may be contributing to this decline. CoinGecko’s report also reveals a daunting statistic: it estimates that more than half, around 52.7% of all crypto projects that began operating since 2021, have now failed, and the rate of collapse appears to be on the rise.

Though the number of new launches still exceeds the number of collapses, the longevity of this current pace raises concerns about its sustainability. CoinGecko offers a hypothesis regarding the surge in project failures, suggesting that Trump’s tariff threats and associated recession fears are linked to the demise of many crypto projects. After his election, there was a notable uptick in meme coin launches, which are now crumbling under market instability.

It’s important to mention that while CoinGecko’s analysis highlights these trends and failures, it does not delve into establishing a clear causal relationship. Factors affecting the crypto landscape could be complex. However, the trends and data reveal a concerning trajectory for the meme coin industry and suggest that the current rate of market activity may not be maintainable over time.

The crypto world may be in for some challenging times ahead if these trends continue.