Record 13M Crypto Projects Now Dead as Bitcoin Critics Claim "Anyone Can Launch a Token"

The crypto market experienced a historic wave of token failures in 2025, with more than 11.6 million projects collapsing, according to CoinGecko data. This accounts for 86.3% of all token failures since 2021, making 2025 the most devastating year for token survivability. The sharp increase in failures reflects the structural challenges facing the industry, including market saturation and extreme volatility.

The number of listed crypto projects surged from 428,383 in 2021 to nearly 20.2 million by the end of 2025. While this growth was fueled by easy-to-use launchpads like Pump.fun, it also led to an oversaturated market. Many of these tokens lacked the liquidity or market support needed to survive turbulent conditions.

Q4 2025 was particularly severe, with 7.7 million token failures occurring in just three months. The October 10 liquidation cascade wiped out $19 billion in leveraged positions within a single day, exposing the fragility of thinly traded tokens. Meme coins and low-effort projects were disproportionately affected, as they lacked the infrastructure or user base to weather the volatility.

Why Did This Happen?

The surge in token failures is closely tied to the rapid pace of token creation. In 2025, the number of new tokens launched outpaced the market's ability to absorb them. This imbalance was exacerbated by the rise of automated launchpads, which allowed nearly anyone to create a token within minutes. The low barriers to entry led to a flood of projects that lacked the fundamentals to sustain long-term interest.

DWF Labs executive Andrei Grachev described the environment as a "crime season," pointing to systemic pressures affecting both founders and investors. Capital has increasingly flowed toward Bitcoin and other established assets, leaving newer projects struggling to attract sustainable liquidity. The data suggests the market has become structurally hostile to new tokens.

How Did Markets React?

The collapse in 2025 has raised concerns about the long-term health of token creation. While innovation is a cornerstone of the crypto market, the current environment has created a cycle of rapid issuance, brief speculation, and eventual collapse. Retail confidence is eroding, reducing available liquidity and raising the bar for future launches.

Market stress events continue to be a vulnerability. The October 10 liquidation cascade demonstrated how quickly systemic shocks can cascade through thinly traded assets. Tokens lacking deep liquidity or committed user bases were disproportionately affected, suggesting similar volatility episodes could trigger additional mass failures in 2026.

What Are Analysts Watching Next?

Analysts are closely monitoring the possibility of further consolidation in the crypto market. As retail capital thins and competition intensifies, newer tokens face rising barriers to survival. Without changes to launch incentives, disclosure standards, or investor education, the market risks repeating the same cycle.

Meanwhile, the U.S. corporate bond market is expected to see a surge in issuance in 2026, driven by AI hyperscalers expanding data center and computing infrastructure. Total U.S. corporate bond issuance is forecast to rise to $2.46 trillion in 2026, nearly 12% higher than the estimated $2.2 trillion in 2025.

The growing dominance of Bitcoin and blue-chip assets suggests that the market is moving toward greater stability, but the underlying structural issues remain unresolved. As token creation continues to outpace liquidity growth, 2026 may see fewer launches, but not necessarily fewer failures. The industry is still in the early stages of adjusting to the new reality.