Crypto Market Collapse Drives 11.6 Million Token Failures in 2025
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 12 2026- Surge in Token Failures: The cryptocurrency industry faced unprecedented turmoil in 2025, with over 11.6 million projects failing, marking the highest annual record and reflecting extreme market fragility and a sharp decline in investor confidence.
- Market Collapse Impact: The October market crash resulted in over $19 billion of crypto leverage being liquidated in a single day, with nearly 7.7 million tokens ceasing trading in Q4, highlighting the severity of the liquidity crisis.
- Explosion in Project Numbers: By the end of 2025, the number of tokens skyrocketed from 3 million in 2024 to over 20 million, driven by Solana's pump.fun platform facilitating rapid low-quality token launches, exacerbating market saturation and increasing failure rates.
- Investor Risk Appetite Shift: Despite high failure rates, the memecoin market cap surged from $38 billion to $47.7 billion at the start of 2026, with transaction volumes increasing over 300%, indicating sustained investor interest and speculative behavior in high-risk assets.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
