A new study has highlighted the number of cryptocurrencies that have failed to live up to expectations since launching amid the prevailing 2022 bear market.
The number of ‘dead’ coins in 2022 decreased by 3x compared to 2021
A new study published on Nov. 29 shows that around 951 cryptocurrencies, specifically listed on pricing site CoinGecko, have been declared “dead” or “failed coins” throughout 2022.
The study noted that while identifying dead coins, it examined cryptocurrencies that may have been off-site in the past two months due to a lack of trading activity. At the same time, the tokens were rendered dead after being considered a scam or requesting deactivation.
The research states, “The last bull market run, which started in November 2020, saw a surge in listed cryptocurrencies, with over 8,000 cryptocurrencies listed in 2021. As of today, around 40% have been disabled and removed from CoinGecko.” said.
Number of dead coin tables. Source: CoinGecko
According to the research, the 2022 dead coin figure represents a significant drop from the 3,322 value in 2021. Notably, in the last nine years, 2021 has recorded the highest number of dead coins amid the prevailing bull market.
The rise of meme tokens
The research pointed out that the high number of dead coins in 2021 could be attributed to the nozzle coin flow into the market. In particular, most memes were of no significant value to anonymous developers and needed more substantial commitments to develop them.
After the success of meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB), many assets have tried to replicate this success. Interestingly, the researchers noted that, excluding the 2021 growth, the number of dead coins averaged 947 between 2018 and 2022.
Despite the 2022 bear market, a previous Finbold report showed more cryptocurrencies appearing on CoinMarketCap, reaching the 22,000 milestone.
Overall, crypto advocates have argued that the number of dead coins should increase as the industry matures. One consensus is that as the industry matures, assets with minimal utility will most likely be wiped out.
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