Over 50% of Cryptocurrencies Fail: Insights from 2025’s Ghost Tokens

In 2025, over 50% of cryptocurrencies launched since 2021 are defunct, a trend that continues to worsen with numerous ghost tokens emerging. Factors for these failures include economic conditions, lack of project viability, and low barriers to token creation. Music and video tokens experience a particularly high failure rate. The situation not only serves as a warning but also highlights the importance of thorough research when investing in cryptocurrencies.

In a startling revelation, over 50% of all cryptocurrencies launched since 2021 are no longer operational. The pace of failures in 2025 is equally alarming, with statistics suggesting that already this year, the rate of defunct tokens has matched that of previous years. It seems that as we sit firmly in 2025, the looming statistics only hint at a trend that might escalate even further, according to insights from Binance and Dune Analytics shared with BeInCrypto.

A report from CoinGecko has brought some alarming figures to light, stating that about 7 million cryptocurrencies listed on GeckoTerminal are in the fray, but a staggering 3.7 million of them have met their demise. Several criteria determine whether a coin has effectively reached the end of the line. A coin is termed ‘dead’ when it completely loses its market utility, liquidity, and community engagement. Key signs include minimal trading activity, no updates on development, and catastrophic price drops. Alsie Liu from Dune Analytics also added that often, teams disappear without a trace, leaving social media silent and websites in disarray.

About 53% of all recorded cryptocurrencies have failed, with the bulk of these collapses happening in the years 2024 and 2025. In fact, 2025 alone has already seen more than 1.82 million tokens stop trading, outpacing the failures of approximately 1.38 million seen throughout 2024. With more than half the year still to come, those figures are likely to only get worse.

So, what accounts for this high failure rate of crypto projects, dubbed “ghost coins” in finance circles? Experts weigh in, pointing to a variety of factors that include broader economic conditions. CoinGecko hinted at a possible correlation between recent economic disturbances, such as tariff changes and recession anxiety, and an influx of meme coins. This surge, occurring after certain elections, seems to coincide with recent market instability, which is potentially stymying their growth.

Yet, we can’t just place all the blame onto larger economic trends. Various fundamentals also contribute to these failures. As noted by a spokesperson from Binance, issues like failing to find a product market fit lead to disinterest from users and investors. A lack of forward-thinking planning, combined with developer abandonment and various shady practices, also play roles in the rapid rise and fall of many projects.

Things became pretty frantic in 2024 with the explosion of new token introductions, especially after the roll-out of the Solana platform Pump.fun, allowing anyone to launch a token for low costs. According to CoinGecko, 3 million new tokens hit the market in 2024, but only half managed to survive. Fast forward to 2025, the scenario looks less promising with a near parity between new launches and failures.

As ecosystems with lesser barriers to entry make it easy to create tokens, many desirous opportunities have turned into ghost tokens rather quickly. The flood of new tokens, especially from Solana’s surge on its token launchpads, has been stark. Many this year showed dwindling activity and engagement after initial excitement faded.

Meanwhile, the meme market has taken a hit too, with a capital drop to $54 billion from its peak of $125 billion in late 2024, marking a very real 56.8% decrease. As a result, trading volumes have also seen a downturn of roughly 26.2% recently.

When taking a closer look, it appears that certain niches such as music and video tokens are facing even more challenges, with reported failure rates of up to 75%. This prompts serious questions about the viability of niche crypto projects. Liu noted that these categories often find it tough to compete with established platforms like Spotify and YouTube. The influx of celebrity-led initiatives without sufficient blockchain knowledge further complicates the situation, reducing these ventures to mere cash grabs.

Adding to the complexity are legal and technical challenges, particularly for music licensing and the resources needed for video delivery. A considerable number of these niche projects struggle without a strong user base or significant network effects to support them, stressing the fact that it takes more than just a good concept to ensure success. The ability to adapt, adapt and meet user needs is equally crucial.

Curiously, the unfortunate rise of ghost tokens offers some valuable lessons for any potential project creators. Past failures can drive better practices, encouraging responsible project development to dodge the same pitfalls. Binance specifically highlighted the cases of BitConnect and OneCoin, both infamous for their underhanded tactics.

The precedents established by these disastrous projects tell us a lot about the signs to look out for. They serve as stark reminders that hype without substance and unrealistic promises are recipes for disaster. Attentive actions on the part of investors also become essential, with the principle of “Do Your Own Research” (DYOR) gaining strong emphasis. Investors are urged to dive into whitepapers, validate project credibility, and keep a sharp eye on development activity, which is key to navigating this volatile landscape successfully.

In conclusion, the ghost token phenomenon acts as a crucial reminder that in the crypto world, knowledge and caution are indispensable. Identifying projects with actual value becomes paramount to differentiating between what will stand the test of time and what will fade into obscurity.