Over 1.8 million tokens disappear in crypto shakeout

The cryptocurrency industry experienced a sharp rise in project failures in the first quarter of 2025, with 1.8 million tokens collapsing, according to a new report published by CoinGecko.

This figure marks the highest number of dead crypto projects ever recorded in a single quarter and accounts for nearly half of all failed tokens launched between 2021 and 2025.

CoinGecko reported that 49.7% of all crypto project failures from the past five years occurred in Q1 2025 alone.

While the report stops short of assigning direct blame, it notes that broader economic concerns, including rising fears of a recession and tariff threats under Donald Trump's presidency, may have contributed to the widespread shutdown of projects.

“By our estimates, 52.7% of tokens launched since 2021 are now considered dead,” the report stated.

Much of the collapse has been concentrated in the meme coin sector, which has surged in activity—particularly on the Solana blockchain.

According to CoinMarketCap, over 14.65 million tokens are currently active, up significantly from just 2.7 million a year ago.

Solana-based meme coins now account for more than 60% of the total number of tracked tokens.

However, this rapid growth has come at a cost.

The oversaturation of low-quality projects has led to higher failure rates, with many tokens unable to sustain market interest or provide lasting utility.

CoinGecko emphasised that the trend of launching large volumes of tokens, especially in volatile categories like meme coins, may not be sustainable if current failure rates persist.

Although new project launches still exceed collapses, the data suggests the industry may be approaching a saturation point.

Without clearer use cases and higher development standards, the sector could face continued instability in the months ahead.