A recent report by AlphaQuest Research has listed Cardano as one of the top ecosystems with “dead coins,” highlighting the record number of failed blockchain cryptocurrency projects in recent years.
Cardano as the main holder of dead coins
Cryptocurrency research platform AlphaQuest published a report highlighting the top categories of ecosystems with dead coins in 2024. According to the report, Cardano currently occupies a prominent position as an ecosystem with one of the largest amounts of dead coins.
AlphaQuest revealed that 74% of Cardano ecosystem projects have “disappeared.” Similarly, the blockchain protocol, Earth Moon shares the spotlight with an equivalent 74% of failed crypto projects.
The crypto company has outlined its criteria for determining what it defines as bitcoin/bitcoin-100000-cardano-dead/” rel=”nofollow noopener” target=”_blank”>dead state, specifying that ecosystems with more than 50% failed projects are classified as “dead”. AlphaQuest revealed that since 2023, there has been a significant decrease in the total market valuewhich caused the death of more than 65% of potentially innovative projects.
The report noted that between the 2020 and 2023 cycle, almost 60% of dormant coins disappeared. After analyzing more than 12,000 cryptocurrency projects, AlphaQuest revealed that the majority of these coins were delisted from CoinMarketCap, experienced low liquidity and trading volume, or had deactivated Twitter accounts and websites.
Including the Cardano Ecosystem, AlphaQuest has identified several other blockchain networks that host a substantial amount of dead coins. This list covers ecosystems such as Harmony ONE, NEAR Protocol, Zilliqa, Celo, and Moonriver.
“A considerable number of crypto projects have a short existence: 21.77% last less than a year and 11.65% last less than six months. Only 22.40% of crypto projects successfully survive more than 4 years,” AlphaQuest stated.
crypto Industry Remains Promising for the Future
Shedding light on 2022 Terra Luna crash and the FTX debacle, AlphaQuest revealed that following the collapse of Terra, 35% of crypto projects were classified as extinct. Similarly, after the FTX crash, 32% of crypto projects failed.
The crypto company has emphasized the need to crack down on nft-market/crypto-scam-alert-fraudsters-impersonate-forbes-journalists-in-plot-to-rob-bayc-holders/” rel=”nofollow noopener” target=”_blank”>cryptocurrency scamshighlighting that the crypto industry has been constantly exploited by fraudulent projects, which have resulted in significant financial losses and considerably tarnished the reputation of the industry.
Despite the deaths of numerous crypto projects, AlphaQuest has emphasized that the cryptocurrency industry remains a hub of innovation, with new crypto initiatives emerging every month. The research firm has highlighted the strong resilience and adaptive nature of the crypto marketpredicting that the industry would have a long-term positive impact on the financial landscape.
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