Cardano Receives Nasty Blow As New Report Dubs It The King Of Dead Coins

A recent report by AlphaQuest Research has listed Cardano as one of the top ecosystems with “dead coins,” highlighting the blockchain’s record number of failed cryptocurrency projects over the past few years. 

Cardano As Top Dead Coin Holder

Cryptocurrency research platform AlphaQuest, published a report spotlighting the leading categories of ecosystems featuring dead coins in 2024. According to the report, Cardano currently holds a prominent position as an ecosystem with one of the highest numbers of dead coins. 

AlphaQuest revealed that 74% of Cardano’s ecosystem projects have “become defunct.” In a similar vein, blockchain protocol, Terra Luna shares the spotlight with a matching 74% of failed crypto projects. 

The crypto company has outlined its criteria for determining what it defines as a 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 overall market value, resulting in the death of over 65% of potentially innovative projects. 

The report noted that between the 2020 and 2023 cycle, almost 60% of inactive coins vanished. After analyzing over 12,000 cryptocurrency projects, AlphaQuest revealed that the majority of these coins were either delisted from CoinMarketCap, experienced low liquidity and trading volume, or had inactivated Twitter accounts and websites. 

Including the Cardano ecosystem, AlphaQuest has identified several other blockchain networks harboring a substantial amount of dead coins. This list encompasses ecosystems such as Harmony ONE, NEAR Protocol, Zilliqa, Celo, and Moonriver. 

“A considerable number of crypto projects have a brief existence, with 21.77% lasting less than a year and 11.65% lasting less than six months. Only 22.40% of crypto projects successfully survive more than 4 years,” AlphaQuest stated. 

Crypto Industry Still Holds Promise For The Future

Shedding light on the 2022 Terra Luna crash and the FTX debacle, AlphaQuest revealed that in the aftermath of Terra’s collapse, 35% of crypto projects were categorized as defunct. Similarly, following the fall of FTX, 32% of crypto projects experienced failure. 

The crypto company has emphasized the need for a crackdown on cryptocurrency scams, highlighting that the crypto industry has been consistently exploited by scam projects, which have resulted in significant financial losses and considerably tarnished the industry’s reputation. 

Despite the death of numerous crypto projects, AlphaQuest has emphasized that the cryptocurrency industry still remains a hub of innovation, with new crypto initiatives emerging every month. The research firm has underscored the strong resilience and adaptive nature of the crypto market, forecasting that the industry would have a positive long-term impact on the financial landscape.