Over 50% of Cryptocurrencies Have Failed, Report Reveals Market Volatility

A recent analysis indicates that more than half of all cryptocurrencies launched since 2017 have failed, highlighting the volatility and fragmentation of the crypto market. The report, published by industry observers, reveals the challenges of sustaining long-term adoption in the sector. Regulatory and economic pressures have played a role in the failure rate, as many projects struggle to maintain relevance and utility according to industry analysis.

The U.S. Senate Banking Committee announced a hearing on Thursday, focusing on a market-structure bill for digital assets. Chairman Tim Scott emphasized the goal of making the U.S. the 'crypto capital of the world.' The hearing aims to address concerns around market oversight and innovation in the rapidly evolving crypto space as reported.

India introduced stricter anti-money laundering (AML) protocols for cryptocurrency exchanges, including mandatory selfie verification, geographical coordinates, and the 'penny drop' method for bank account validation. These measures aim to enhance transparency and discourage initial coin offerings according to regulatory updates.

Why Did This Happen?

The report on dead coins reflects the broader trend of consolidation and failure in the crypto market. Many projects launched with hype and speculative investment but lacked sustainable models or real-world use cases.

The failure rate has also been exacerbated by regulatory scrutiny and the collapse of major exchanges and platforms as detailed in analysis.

Regulatory uncertainty has been a major factor. The U.S. is working on a comprehensive market structure bill that could reshape the legal framework for digital assets. South Korea, meanwhile, is planning to allow bitcoin spot ETFs in 2026, aligning with global trends in institutional adoption as reported by financial analysts.

How Did Markets React?

The introduction of new regulations and market structures has created uncertainty for investors. Coinbase, one of the largest crypto exchanges, has raised concerns about potential restrictions on stablecoin rewards in the proposed legislation. The company may withdraw support for the bill if it includes language that limits its ability to offer yield incentives according to Bloomberg reporting.

In contrast, South Korea's decision to permit bitcoin ETFs has been seen as a positive step for institutional adoption. The Financial Services Commission (FSC) has aligned the move with global regulatory trends, particularly in the U.S. and Hong Kong. BlackRock has already capitalized on the U.S. ETF market, with spot bitcoin ETFs becoming a top revenue source for the firm as noted in industry coverage.

What Are Analysts Watching Next?

Analysts are closely monitoring regulatory developments in the U.S. and other major economies. The U.S. Senate's handling of the market-structure bill could determine the pace and direction of crypto regulation. If the bill includes restrictions on stablecoin rewards, it could shift the competitive landscape in favor of traditional banks according to market analysis.

India's financial intelligence agency has expressed concerns about the risks associated with crypto transactions. These warnings are likely to influence future regulatory decisions in the country. The Indian government may impose further restrictions on crypto activity to protect tax enforcement and financial stability as reported by financial outlets.

Colombia and other countries are also advancing crypto tax rules under the OECD's Crypto-Asset Reporting Framework (CARF). These efforts aim to close reporting gaps and align global standards for digital asset taxation. The first automatic exchanges of information under CARF are expected in 2027 according to industry reports.

Presale activity remains a focal point for new investors. Blazpay ($BLAZ) has gained attention in the 2026 presale market with its AI-driven DeFi model. The platform's presale is nearing completion, with Phase 6 progress reaching 94%. The project's modular and AI-powered approach differentiates it from other early-stage crypto offerings as highlighted in press coverage.

Regulatory and market developments will continue to shape the crypto landscape in the coming months. Investors are advised to track both U.S. legislative progress and international regulatory trends as they evolve.