Introduction to the Crypto Market’s Latest Trend
Bitcoin developer Jameson Lopp recently shared an insightful observation, highlighting the misconception that Bitcoin’s scarcity is threatened by the ease of launching new cryptocurrencies. However, as Lopp pointed out, while anyone can copy code, replicating a network of users and infrastructure is a far more complex task. This notion is further supported by a report from CoinGecko, which reveals that a staggering 53.2% of tokens tracked on GeckoTerminal between July 2021 and December 2025 are now inactive, totaling around 13.4 million outages out of 25.2 million listed.
Understanding the Concept of Scarcity in Cryptocurrencies
The idea that anyone can launch a new cryptocurrency has led many to believe that Bitcoin’s scarcity is not a unique feature. However, as Lopp’s observation suggests, the true scarcity lies not in the code itself, but in the network of users and infrastructure that supports it. This is evident in the fact that millions of tokens have been launched, but only a select few have managed to gain significant traction and maintain a strong user base.
The data from CoinGecko’s report further emphasizes this point, showing that the number of token outages has increased significantly over the past year, with 11.6 million tokens becoming inactive in 2025 alone. This represents a staggering 86.3% of all outages in the data set, highlighting the challenges that new cryptocurrencies face in gaining and maintaining a strong user base.
The Role of Network Effects in Cryptocurrency Success
The success of a cryptocurrency is heavily dependent on network effects, which refer to the idea that the value of a network increases exponentially with the number of users. This is evident in the fact that Bitcoin, with its large and established user base, has managed to maintain its position as the leading cryptocurrency despite the launch of numerous alternative tokens.
The data from CoinGecko’s report suggests that network effects play a significant role in determining the success of a cryptocurrency. Tokens that have managed to gain a strong user base and maintain a high level of liquidity have been more likely to survive, while those that have failed to do so have been more likely to become inactive.
Implications of the CoinGecko Report
The CoinGecko report has significant implications for the cryptocurrency market, highlighting the challenges that new tokens face in gaining traction and maintaining a strong user base. The report also emphasizes the importance of network effects in determining the success of a cryptocurrency, and suggests that tokens that are able to establish a strong user base and maintain high levels of liquidity are more likely to survive.
The report also raises questions about the future of the cryptocurrency market, and whether the trend of token outages will continue. As the market continues to evolve, it will be interesting to see how new tokens navigate the challenges of gaining traction and maintaining a strong user base.
Conclusion
In conclusion, the CoinGecko report highlights the challenges that new cryptocurrencies face in gaining traction and maintaining a strong user base. The report emphasizes the importance of network effects in determining the success of a cryptocurrency, and suggests that tokens that are able to establish a strong user base and maintain high levels of liquidity are more likely to survive. As the cryptocurrency market continues to evolve, it will be interesting to see how new tokens navigate these challenges and whether the trend of token outages will continue.
