52% of cryptos launched since 2021 are dead. What should investors focus on in 2025?
ADVERTISEMENT Despite over 5,300 tokens launching daily, many of these projects lack utility or sustainability, with meme coins and scam tokens accounting for more than $500 million in investor losses in 2024, the report said.
The early crypto bull runs of 2016–2017 and 2020–2022 were largely driven by retail investors chasing quick gains in altcoins. But the market dynamic has shifted. Since 2024, governments and institutional players have increasingly entered the crypto space.
From the U.S., China, and Bhutan holding Bitcoin in sovereign reserves to BlackRock's $80 billion deployment through Bitcoin and Ethereum ETFs, institutional adoption is gaining momentum. Meanwhile, India has ranked No. 1 in global crypto adoption twice in the last three years, even as high taxation continues to challenge retail participation.The 1 Finance report suggests the crypto ecosystem is evolving into a more mature financial market. With increased adoption comes greater demand for credibility, accountability, and research-backed decisions.'While crypto markets may seem overwhelming with the daily influx of new coins, it is gradually maturing,' said Purvang Mashru, Senior Quantitative Research Analyst at 1 Finance. 'The crypto market cap has surpassed $3 trillion, and Bitcoin is now valued more than companies like Google and Meta. But volatility remains a key risk. A clear focus on education and fundamental analysis will help investors make better decisions.'
ADVERTISEMENT Mashru added that investors should apply the same rigour to crypto as they would to traditional assets—evaluating value, utility, and fit within a broader wealth strategy.
ADVERTISEMENT With token launches continuing at breakneck speed, separating high-potential projects from short-lived hype is increasingly important. The report stresses that serious investors are now turning to on-chain metrics—such as wallet activity, protocol revenue, developer contributions, and governance transparency—to assess a project's underlying strength.'Just like stock investors examine cash flows and profitability, crypto investors must understand what they're investing in and why it holds value,' the report said.
ADVERTISEMENT While hype-driven tokens will continue to capture headlines, the long-term winners are more likely to be those backed by strong fundamentals, real-world use cases, and institutional validation, 1 Finance noted.'A bigger trend is emerging. As governments and institutions increase their exposure, crypto is steadily becoming mainstream,' the report concluded. 'This highlights the importance of moving beyond short-term market noise and focusing on credible, research-backed projects. A thorough and informed approach will be key to capturing meaningful opportunities in the evolving digital asset space.'
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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