Evolution

Bitcoin

Rise

You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/the-rise-and-fall-of-cryptocurrencies-a-tale-of-market-evolution-and-project-failures" rel="noopener noreferrer nofollow">The Rise and Fall of Cryptocurrencies: A Tale of Market Evolution and Project Failures</a> 
The cryptocurrency world has transformed from an obscure concept to a mainstream financial investment. The market has seen a surge in expectations for mainstream adoption with the launch of spot <a href="https://en.bitcoinhaber.net/significant-daily-drop-in-crypto-market-followed-by-a-positive-turn-after-fed-meeting" rel="noopener noreferrer nofollow">Bitcoin</a> ETFs. However, a closer look reveals a stark reality: a significant number of cryptocurrencies are failing.
After the 2021 bull market, the cryptocurrency space experienced an increase in project failures. The rapid market expansion led to the creation of numerous cryptocurrencies, many of which struggled to withstand the test of time.
A study by CoinGecko sheds light on the fate of over 24,000 cryptocurrencies listed since 2014, revealing that more than 50% are at risk of extinction. The report highlights a striking correlation between project failures and bull markets, with the majority of failed crypto projects emerging during the 2020-21 bull market, totaling 7,530 defunct cryptocurrencies.
Further analysis shows that during the 2021 and 2017 bull markets, the failure rate of new cryptocurrencies was alarmingly high, at around 70%. The following year, 2022, saw nearly 60% of listed cryptocurrencies facing a similar fate. CoinGecko classifies a cryptocurrency as “failed” or “dead” if it shows no trading activity in the last 30 days, including proven scams, rug pulls, or projects abandoned by their founders.
2023 marks a significant improvement with only 10% of listed cryptocurrencies failing, indicating a maturing market favoring substantial and reliable ventures over speculative “shitcoins.” As traditional financial risks continue to permeate the crypto space, the failure rate is expected to decline further, fostering a more robust and reliable ecosystem.
<h5>The post first appeared on BH NEWS: <a href="https://en.bitcoinhaber.net/the-rise-and-fall-of-cryptocurrencies-a-tale-of-market-evolution-and-project-failures" rel="noopener noreferrer nofollow">The Rise and Fall of Cryptocurrencies: A Tale of Market Evolution and Project Failures</a></h5>

The Rise and Fall of Cryptocurrencies: A Tale of Market Evolution and Project Failures

BH NEWS

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