According to Nomics, approximately 12000+ crypto coins have become zombies, which are neither technically dead nor alive. The tables were turned when investors began to avoid risky digital assets amid disrupted macroeconomic conditions.

This year has not been kind to the cryptocurrency market, with the total market cap of all digital assets falling from $2 trillion to $980 billion. The market value that has vanished is the result of thousands of crypto tokens that have stopped trading this year.

Furthermore, venture capital funding has slowed following the failures of Terra blockchain, hedge fund Three Arrows Capital, and various companies such as Celsius Network.

Reduced Funding and Market Interest May Be to Blame

According to Nomics, approximately 12000+ crypto coins have become zombies, which are neither technically dead nor alive. This means that trading in these coins has ceased, and the coins are constantly moving in consolidation. Many cryptocurrency projects offer rewards and compensation to their users in exchange for keeping the network running.

Numerous startups that issued new tokens supported such projects, creating a bullish market sentiment. This was all in 2021 when the demand for reward-giving crypto projects skyrocketed, driving up prices; however, everything changed this year.

Therefore, the liquidity for new and existing projects dropped, making it harder for even good projects with the utility to sustain their operations this year.

Nick Gauthier, Most Zombie Projects are Meme Coins

A co-founder at Nomics, Nick Gauthier, has said that most of the zombie projects are related to meme coins, small personal projects, and short-term leveraged assets. He also stated that even the currently trading assets receive thin volume these days.

The data provider reports that out of 64,400 cryptos, only 13,800 received a trading volume in the previous 24 hours. Gauthier also insisted that some coins were moving in a direction to become zombie coins like Terra Classic, as they are receiving only a fraction of a cent as trading.

Will the Coins Keep Turning into Zombie?

Some experts also believe that as more coins enter the market, people’s interest in one fades, and they move on to the next. The constant birth of new tokens with useful utility eventually turns abandoned tokens into zombies. The process is expected to continue in the next bull run because there is no regulation or cost to creating a new token, and there is no limit to the warehouse for dead tokens.

To summarize, the next bull market may bring even more new tokens, many of which may become zombies over time as a result of this dynamic, which causes new coins to be born as others are abandoned.

Read more:

Tamadoge - The Play to Earn Dogecoin

Our Rating

  • '10x - 50x Potential' - CNBC Report
  • Deflationary, Low Supply - 2 Billion
  • Listed on Bybit, OKX, Bitmart, LBank, MEXC, Uniswap
  • Move to Earn, Metaverse Integration on Roadmap
  • NFT Doge Pets - Potential for Mass Adoption