Among 1,539 cryptocurrencies that once broke into the top 100 by market capitalisation, 71.9 percent have effectively disappeared from the market.

On Aug. 6 (local time), blockchain media outlet CoinPost reported that crypto analytics firm CryptoRank disclosed the findings on Aug. 4 via X, formerly known as Twitter.

CryptoRank classified a cryptocurrency as dead if it was delisted from major exchanges or if its daily trading value fell below $10,000 for more than 90 days. The criteria reflect not a simple price drop, but a state in which trading continuity and liquidity have effectively collapsed.

The findings estimated a 62 percent chance that a cryptocurrency entering the top 100 will disappear within five years. That rose to 84.7 percent after 10 years and 91.5 percent after 12 years. The median survival period was just 2 years and 4 months.

However, the overall disappearance rate of 71.9 percent and the time-based disappearance rates were calculated differently. The 71.9 percent figure is the current share of the entire sample classified as dead, while 62 percent, 84.7 percent and 91.5 percent are estimates based on the time elapsed after entry into the top 100.

CryptoRank explained that entry into the top 100 does not guarantee long-term promise. It means that even if a token once drew attention and rose into the upper ranks, long-term survival depends on liquidity and sustained trading.

A similar pattern was seen in a point-in-time comparison. CryptoRank tracked what happened to the top 100 cryptocurrencies by market capitalisation as of July 2021 and found that only 41 remain in the top 100 to date. Another 46 fell out of the top 100 but continued trading, while 13 were delisted or effectively stopped operating.

Performance was also weak among those that dropped from the top ranks. The median price decline for those cryptocurrencies reached 93 percent. Many projects that once drew market attention failed to maintain their rankings and prices thereafter.

In particular, about 65 percent of those that exited the top ranks were layer 1 and layer 2 blockchains once called 'Ethereum killers'. By contrast, the number of stablecoins in the top 100 doubled to 16 from 8. The analysis said shifts in investor preference in the crypto market also significantly changed the composition of the top tier.

The tally shows that short-term rises in market capitalisation and long-term survival are separate issues in the crypto market. A key factor distinguishing survival has emerged as how consistently liquidity and trading volume are maintained after entering the top 100, rather than the track record of having entered it.

☠️ 62% of Top-100 Tokens Die Within 5 Years We analyzed 1,539 tokens that have ever entered the crypto Top 100. 71.9% are already classified as operationally dead. Estimated mortality reaches 84.7% after 10 years, while the median lifespan is just 2 years and 4 months. To… pic.twitter.com/OHhm8gjKtY