According to a recent report by AlphaQuest, Cardano is among the top chains hosting “Dead Coins.” The research group analyzed over 12,000 crypto projects, arriving at some crucial conclusions, including the death of most of those projects.
In a recently uploaded video, an Altcoin Buzz host analyzed AphaQuest’s report, revealing that 72% of all crypto projects created during the 2020-2021 bull run have died. The analyst noted that Cardano and Terra ecosystems are among the top 10 categories with the most dead coins. He further revealed that the average lifespan of most crypto projects lasts only three years.
Notably, AlphaQuest classified the crypto projects using four distinctive criteria. They include low trading volume/liquidity, inactive/deleted X accounts, down websites, and delisting from CoinMarketCap.
Further details from the AlphaQuest report showed that most projects under review died in 2023. With nearly 60% of the dead coins going extinct last year, it qualifies as a critical year for crypto projects in the current cycle. During this period, 93% of the projects had low trading volume and low liquidity, with 58% having a deleted or inactive X account or website.
Focusing on Cardano, the AlphaQuest report noted that at least 74% of the projects in the Cardano ecosystem were dead. The report showed the average lifespan of these projects to be around 2.21 years. It also showed that 11.65% don’t make it past the first six months, while 21.77% fail around the one-year mark. However, 22.4% of the projects lasted until the fourth year of the bull cycle.
Further examination of the report showed that 75% of the dead projects are in the video game and music sector. Another 75% are asset-backed stablecoins, with the metaverse claiming 51% of the projects in this category.
Despite the many failed projects in the Cardano ecosystem, AlphaQuest noted that several other projects are thriving. One such project is Wanchain, a decentralized blockchain interoperability solution that has performed well and earned notable recognition, according to the Altcoin Buzz host.
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