Cryptocurrency Projects: 72% Fatality Rate During Bull Season

MetaversePlanet March 11, 2024Last Updated: August 21, 2024

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A recent report reveals that 72% of cryptocurrency projects launched during the last bull market have failed. Among these, 93% suffered from low trading volumes and liquidity issues, signaling a decline in investor interest.

At Metaverseplanet.net, we highly value blockchain technology and believe that cryptocurrencies will, in some form, integrate into the financial sector. Nonetheless, we consistently advise against succumbing to the fear of missing out (FOMO) during cryptocurrency surges and caution against engaging in high-risk practices like leveraged trading without adequate financial knowledge.

With Bitcoin hitting new all-time highs, cryptocurrencies are once again dominating headlines. This article discusses a report that underscores why one should be wary of advice like “Sell your house and car and invest in the latest trending coin.” According to the study conducted by Alphaquest and Storible, 72% of altcoins introduced since 2020 have vanished. While some cryptocurrency projects have seen their value increase by hundreds or even thousands of times, the vast majority have completely disappeared from the market.

93% of the projects launched in the previous bull season have low trading volume and have liquidity problems

Cryptocurrency Projects: 72% Fatality Rate During Bull Season

Alphaquest conducted a thorough analysis of over 12,000 cryptocurrency projects in its research. The criteria for deeming cryptocurrency projects as “extinct” included “low trading volume and liquidity,” “inactive or deleted social media accounts,” “shutdown websites,” and “removal from CoinMarketCap.” A total of 8,854 cryptocurrency projects were identified that met these criteria.

An overwhelming 93% of the projects considered “dead” suffered from low trading volume and liquidity problems, indicating a waning interest from cryptocurrency investors. Additionally, nearly half of these projects had their websites closed, and their listing was removed from CoinMarketCap.

In summary, more than two-thirds of the cryptocurrency projects launched impulsively during the 2020-21 bull market have not stood the test of time, with the projects effectively fading into oblivion.