Analysts at CoinGecko point out that the number of "dead digital assets" in 2022 increased 3.5 times compared to 2021. In 2021, over 8000 cryptocurrencies were presented on the CoinGecko website. The growth was provided by an increase in their value.
Since that time, at least 3,300 cryptocurrencies have been removed from the market by their developers or exchanges. Also, according to CoinGecko analysts, the capitalization of the cryptocurrency market has also decreased by 3.5 times, from $ 3 trillion to $ 866 billion.
At the same time, CoinGecko analysts point out that during this period, the blockchain ecosystem on a global scale has not undergone significant changes.
What is the reason that the number of "dead coins" has grown so rapidly in 2022
CoinGecko analysts suggest that during this year, a huge number of cryptocurrency projects, tokens, and coins were presented on the market, whose value was questionable, or was zero at all. Many of them were created by teams who wished to remain anonymous, not offering a clear strategy for their projects.
Due to the fact that assets and projects were created by inexperienced developers, their cryptocurrencies could not withstand the recession in the market and many users did not see any value in them for themselves.
Will the number of "dead assets" increase in 2023
Next year, the cemetery of shitcoins (coins that have no value on the market) may increase. Also, since the spring of this year, the cryptocurrency market has been recording a monthly outflow of funds from stablecoins. This is the conclusion that Glassnode analysts came to after studying the blockchain data. In their opinion, investors are forced to do this because they do not expect positive news in the market in the short term.
As for the "dead coins", indeed their number may increase. If developers offer assets that have no practical or social utility for the market, it is not surprising that they do not function for more than a few months after launch.
