New study finds 97% of memecoins failed by 2024

A recent study conducted by Chainplay has revealed an alarming 97% failure rate for memecoin projects launched in 2024.

So-called memecoins, known for their speculative nature and often being inspired by internet memes, have shown an extremely short lifespan and a propensity for bankruptcy that is generating concern among investors and cryptocurrency market analysts.

According to the study, the average lifespan of a memecoin is just one year, a significant difference from traditional cryptocurrency projects, which typically last around three years.

Data from AlphaQuest, a cryptocurrency research tool, reveals that approximately 2,020 memecoin projects are abandoned or shut down each month, a statistic that highlights the volatility and risk associated with these assets.

The research also details the mortality rates of memecoins across different blockchain platforms. Base leads the way with a mortality rate of 66.91%, followed by Solana at 54.03% and Ethereum at 36.59%. These rates indicate that regardless of the platform used, most memecoins end up failing within a short period of time.

Memecoins

In addition to the high failure rates, memecoins are also often associated with malicious activity. The study indicates that more than half of these coins (55.24%) are involved in fraud or scams, which raises concerns about the safety of investors who choose to enter this market.

Despite these risks, memecoins continue to attract investors, especially those looking for quick gains. Research from Chainplay shows that nearly 60% of investors view these cryptocurrencies as short-term investments. Furthermore, two-thirds of crypto investors said they have invested in memecoins at some point, highlighting the popularity of these assets despite the risks involved.

The perception of memecoins varies greatly among investors, depending on their experience in the market. The study found that 54% of investors do not consider memecoins essential to their portfolios, while 58% of new investors — those with less than six months of experience — see these coins as crucial.

On the other hand, only a third of investors with more than a year of experience consider memecoins essential, suggesting that greater experience leads to a more cautious approach.

The media outlook also reflects this caution. Only 13.77% of news stories about memecoins are positive, highlighting a predominantly pessimistic view towards these assets.

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