Crypto Market Cap Surpasses $3 Trillion Amid 1.82 Million Token Failures in 2025
2min read The crypto market has shown signs of recovery, with the total market cap recently surpassing $3 trillion, indicating growing investor confidence. However, the underlying reality is more grim. Many tokens listed this year have failed due to a lack of sustainable growth methods. Venture capitalists (VCs) are often blamed for this situation as they tend to fund new and emerging crypto products primarily for short-term profits, which can be detrimental to the industry's long-term viability.
David Phelps of JokerRace explained the typical VC operation in the crypto space: "Normally, VC money comes from the top for a few years while companies work to get it from the bottom long term… but in crypto, that hasn’t happened. Companies have taken money from the top, used it to mint a token at VC-level valuations, then worked to bolster token price—with their own tokens." This approach has led to a situation where many crypto projects are struggling as market conditions worsen and VCs pull back their investments.
A recent research report revealed that over 1.82 million cryptocurrencies failed in 2025 alone, while approximately 1.93 million were successfully listed. This marks a significant increase from 2024, when only 1.38 million tokens failed. The rising number of failures highlights a shift in vision within the industry, transforming what started as a financial revolution into a gamble for quick profits. This shift has compromised the original purpose of cryptocurrency, which was to create financial independence.
In an interview, Hank Huang, CEO at Kronos Research, discussed how crypto projects can differentiate themselves from scams and build long-term value. He emphasized the importance of starting with a smaller market cap to capture investors' attention and avoid artificially inflated valuations. By focusing on achievable milestones, building strategic partnerships, and providing a clear roadmap, projects can build confidence and foster real engagement. The DAO model, where the community is empowered to make key decisions, can also play a crucial role in creating long-term value through collective input and collaboration.
One of the key reasons for token and project failures is a lack of focus on revenue. Many VC-driven projects operate on free money, offering free services until the funds run out. This creates an environment where investors are hesitant to pay for similar services, even if the alternatives are more sustainable. To pivot towards creating business models grounded in real value and user-driven revenue, crypto companies should focus on real revenue models through fees, services, or user-driven growth. With a clear, attainable roadmap, projects can build slowly but for the long term, avoiding over-promising and under-delivering, and instead, creating sustainable value for years, not months.
It is a critical time for the crypto market to realign with its original purpose: creating financial independence. This shift is necessary to prevent the crypto market from collapsing into a full-blown crisis. By focusing on sustainable growth and real value, the industry can move away from the current trend of quick profits and towards a more stable and viable future. 
