The cryptocurrency markets remained on the back foot for 12 months straight in 2022 giving investors nothing but misery. The markets barely rallied and experienced more downturns this year burning a hole in investors’ pockets. While the weak global economy is the main culprit for the downturn, a series of unfortunate events also caused the crypto markets to crash.
The events include TerraUST and Luna collapse, and FTX bankruptcy, among others. In 2022 alone, a handful of cryptocurrencies died or vanished from the markets during the ongoing and harsh bearish conditions.
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How Many Cryptocurrencies Died in 2022?
Surprisingly, more cryptocurrencies died in 2021 during the bull markets than in 2022 during the bear markets. Data from CoinGecko shows that 3,322 cryptocurrencies died in 2021 despite leading cryptos reaching their all-time highs last year.
However, the number of cryptocurrencies dying saw a drastic drop, as only 951 cryptos died in 2022 despite the bear markets.
In 2021 – 3,322 cryptocurrencies died during the bull markets.
In 2022 – 951 cryptocurrencies died during the bear markets.
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The year 2021 saw the highest number of cryptocurrency deaths since the last decade. The high number of cryptocurrencies dying could be because 2021 saw a rise in new meme-coins mushrooming every day in the markets.
The majority of these new and obscure meme coins closed down, weeks or months after being operational. While many died a natural death, a handful of them was rug pulled by the founders and developers.
Currently, more than 22,000 cryptocurrencies are trading in the indices and many more could be wiped out if the markets fail to get back on track. The number of dead cryptocurrencies could pile up next year if the global economy faces a recession.
The downfall is also hurting crypto exchanges that have lost a considerable amount of revenue due to the bearish conditions. The exchanges cut down on staff to remain afloat during these times of uncertainty. Read here to know the full list of crypto exchanges that closed down in 2022 during the bear markets.
Also Read: 3 Cryptos That Lost Their ‘Hype’ in 2022